In the Boston Consulting Group (BCG) Model for Analysis of a Firm's

question 54

Multiple Choice

In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the horizontal axis reflects the

• A)national forecast.
• B)business portfolio in dollars.
• C)years of experience.
• D)market segment size.
• E)relative market share.

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Definitions:

Leverage

The use of various financial instruments or borrowed capital, such as debt, to increase the potential return of an investment.

Activity

Actions taken or work performed, typically aimed at achieving certain goals or objectives.

Profitability

The ability of a business to earn a profit, which is a financial gain that results when the amount of revenue gained from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Asset Management

The practice of strategically managing company or individual assets to increase value and achieve financial objectives.