The Boston Consulting Group (BCG)business Portfolio Analysis Requires an Organization

question 324

Multiple Choice

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix.In a growth-share matrix,the vertical axis of the matrix indicates

• A)the annual rate of growth of the firm's largest competitor.
• B)the relative dollar market share of the largest competitor.
• C)the annual rate of growth of the SBU's industry.
• D)the relative unit market share of the largest competitor.
• E)the annual rate of growth of the firm itself.

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Definitions:

Effective Annualized Rate

The interest rate on an investment or loan on an annual basis, taking compounding into account.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Effective Interest Rate

The actual annual interest rate that an investor earns or pays, taking into account the effect of compounding over the period.

GICs

Guaranteed Investment Certificates, a secure investment that guarantees to preserve the principal amount while offering a fixed interest rate over a specified period.