Your Firm Has $4,000,000 Available for Investment in Capital Projects

question 72

Multiple Choice

Your firm has $4,000,000 available for investment in capital projects. Which combination of projects is the best, given this budget constraint?

• A) A, B, C
• B) A, B, D
• C) A, C, D
• D) B, C, D

Identify specific strategies appropriate for each category (Dogs, Question Marks, Stars, Cash Cows) in the BCG Matrix.

Differentiate between various business growth strategies such as concentration, diversification (related and unrelated), integration (forward, backward, vertical), and retrenchment.

Recognize strategies suited for business renewal and stabilization such as restructuring, turnaround, and liquidation.

Comprehend the strategic implications of business growth through mergers, acquisitions, and global expansion.

---

Definitions:

Method of Substitution

A method involving the resolution of equation systems through isolating a variable in one equation and then inserting that solution into another equation.

System of Equations

A set of equations with the same variables, where the solution must satisfy all equations simultaneously.

Hyperbola

A type of smooth curve lying in a plane, consisting of two branches, which are mirror images of each other, and which open away from each other.

Center and Vertices

Key elements in geometry, specifically for ellipses and hyperbolas, where the center is the midpoint of the vertices (the major points).