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Refer to the Scenario Below to Answer the Following Questions

question 60

Multiple Choice

Refer to the scenario below to answer the following questions.
Clubhouse Gourmet -A- (Scenario)
Imagine that you are the president of Clubhouse Gourmet, a successful chain of fast-food restaurants with 60 locations across Canada. The success you have experienced in the last five years has you considering various options about what to do next with the business. Should you continue to expand the business at the current rate? Or perhaps open new and different restaurants? What should you do?
-It is now 10 years later, and as the original owner of Clubhouse Gourmet, you have seen your business holdings grow substantially. The number of stores you own and franchise has grown by 200 percent, and you own a number of companies in both related and unrelated industries. You now need to develop strategies to manage your portfolio of businesses, so you turn to the BCG matrix for help.Since most of the businesses in your portfolio operate independently under their own strategies, they are considered _______.

Definitions:

Relevant Range

It refers to the span of activity within which the assumptions about fixed and variable cost behaviors hold true.

Contribution Margin

The amount of revenue left after deducting all variable costs associated with producing and selling a product, indicating how much contributes towards covering fixed costs and generating profits.

University Store

Not specific enough to provide a definition without context but generally refers to a retail outlet or bookstore operated by or on behalf of a college or university.

Sunk Cost

An expense that has been paid and cannot be retrieved.