One of the Weaknesses Inherent in the Use of the BCG

question 149

Multiple Choice

One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it

• A)causes dissension between different divisions when one is labeled a "star" and another a "dog."
• B)reduces employee motivation to move a low valued SBU to a higher one.
• C)considers too many SBU factors beyond market growth rate and relative market share.
• D)does not require sales forecasts in order to be implemented.
• E)is often difficult to obtain the needed information to correctly place SBUs in the matrix.

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Definitions:

Artificial Time Periods

A division of operational time into smaller, manageable segments for accounting or reporting purposes, such as quarters or fiscal years.

Initial Recorded

Represents the initial entry or documentation of a financial transaction or asset in the accounting records of a business.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.

Expenses Paid

Refers to the amounts of money disbursed to cover operating costs or charges incurred in the conduct of a business.