On What Assumption Is the BCG Portfolio Model Based

question 3

Multiple Choice

On what assumption is the BCG Portfolio Model based?

• A) Profitability and cash flow will be closely related to sales volume.
• B) Return on investment (ROI) will be directly related to sales volume.
• C) Cash flow is equal to investment.
• D) Investment + Cash flow = Profitability.

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Definitions:

Resource Price

The cost associated with obtaining resources required for production, such as raw materials, labor, or capital.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a given price in a given time period.

Substitute Resources

Alternative resources that can be used in place of another for the production of goods and services.

Resource

A source or supply from which benefit is produced, typically natural, human, or capital resources used to produce goods and services.