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The BCG Matrix Is a Means of Evaluating Strategic Business

question 66

True/False

The BCG matrix is a means of evaluating strategic business units on the basis of both their business growth rates and their profitability.


Definitions:

Equity Sold

The process of selling ownership interest in a company in exchange for capital.

Net Capital Spending

The total expenditure on capital assets, minus any sales of existing assets.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating the company's ability to generate sufficient positive cash flow to maintain and grow its operations.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all incomes and expenses except interest and income taxes.

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