The BCG Matrix Limitations Include All of These Except

question 19

Multiple Choice

The BCG Matrix limitations include all of these except:

• A) viewing every business as a star, cash cow, dog or question mark can be an oversimplification.
• B) requiring at least three years' worth of data.
• C) not reflecting divisional or industry growth over time.
• D) not allowing a company to be classified as somewhere in between two categories.
• E) other variables such as size of market and competitive advantages are not considered

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Definitions:

Bond Portfolio

A collection of bonds held by an individual or institution as an investment strategy to diversify risk and generate income.

Maturity

The final payment date of a loan or financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Interest Rate Risk

The risk that changes in interest rates will adversely affect the value of an investment, particularly relevant for fixed-income securities.

Variable-Rate Assets

Assets that earn interest at rates which adjust over time based on prevailing market conditions.