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

question 35

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.The vertical axis of this 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.

Discern the use of asset, liability, and equity ratios in evaluating company efficiency.

Understand the impact of transactions on financial ratios.

Analyze the effect of operational strategies on cost control and revenue generation.

Evaluate the role of market and industry factors in shaping financial outcomes.

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Definitions:

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield of long-term government bonds.

Stock Index

A measurement of the performance of a group of stocks, which represents a portion of the overall market.

Anticipated Dividend

Expected payment of dividends from a stock, often based on the company's earnings forecasts or past dividend payments.