Gillette Operates Numerous Strategic Business Units

question 21

Multiple Choice

Gillette operates numerous strategic business units. Most of its ____ are in the personal care division.

• A) dogs
• B) question marks
• C) stars
• D) cash cows
• E) none of these

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Definitions:

Proxy Right

A right granted to an individual or group to vote on behalf of another person, usually a shareholder, in corporate decisions and elections.

Financial Leverage

The use of borrowed money (debt) to finance the purchase of assets, with the expectation that the income or capital gain from the assets will exceed the cost of borrowing.

Voting Right

The entitlement of the shareholders of a company to vote on corporate policy, including decisions regarding the corporate board.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.