Using the Boston Consulting Group Matrix,SBUs Are Classified on the Basis

question 148

Multiple Choice

Using the Boston Consulting Group matrix,SBUs are classified on the basis of

• A) market share and market growth rate.
• B) market share and cash generation potential.
• C) market growth rate and financial strength.
• D) financial strength and product life cycle.
• E) cash generation potential and product life cycle.

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Definitions:

Straight-Line Depreciation

A procedure for breaking down the cost of a tangible asset over its period of operation in equal annual installments.

Mutually Exclusive

Situations or events that cannot occur at the same time, requiring a choice to be made.

Straight-Line Depreciation

A template for apportioning the cost of a solid asset throughout its active life in equal yearly parts.