The Boston Consulting Group (BCG) Has Given Specific Names and Descriptions

question 77

Multiple Choice

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Cash cows are SBUs that are classified as having

• A) high market growth rates and high relative market shares.
• B) low market growth rates but high relative market shares.
• C) low market growth rates and low relative market shares.
• D) high market growth rates but low relative market shares.
• E) medium market growth rates and medium relative market shares.

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Definitions:

Ceases Operations

The process when a business stops its principal business activities and ends its operations.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, holding an ownership stake.

Residual Claim

The right of shareholders to claim assets remaining after all debts have been paid in the event of a company's liquidation.

Debts And Obligations

Amounts of money or services owed to others that represent claims against a company or individual's assets.