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

question 104

Multiple Choice

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 horizontal axis of this matrix indicates

• A) the annual rate of growth of the SBU's industry.
• B) the relative dollar ($) market share of the largest competitor.
• C) the annual rate of growth of the firm's largest competitor.
• D) the relative unit (#) market share of the smallest competitor.
• E) the annual rate of growth of the firm itself.

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Definitions:

Issuing Securities

The process by which a corporation offers new stocks or bonds to the public or existing shareholders or bondholders.

Secondary Market

The financial market where investors purchase and sell securities they already own, as opposed to the primary market where securities are first issued.

Firms

Firms are business organizations engaged in commercial, industrial, or professional activities, typically comprised of a partnership or a corporation.

Primary Market

The financial market for new securities issues where corporations sell new stocks and bonds to the public for the first time.