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

question 160

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 located in which quadrant of the BCG growth-share matrix?

• A)upper left quadrant
• B)upper right quadrant
• C)center of the four quadrants
• D)lower right quadrant
• E)lower left quadrant

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Definitions:

Parking

The act of stopping and disengaging a vehicle and leaving it unoccupied.

Implicit Costs

Additional costs that do not appear on the financial statements of a company. These costs include items such as the opportunity cost of capital.

Economic Profits

Profits that exceed the opportunity costs of all resources used by the firm, including both explicit and implicit costs.

Sunk Costs

Costs that cannot be recovered. They are unavoidable even in the long run.