The O'Brien Corporation Is Evaluating the Purchase of a Small

question 52

Multiple Choice

The O'Brien Corporation is evaluating the purchase of a small firm which manufactures doodads, a product involving advanced technology. Doodads are expected to revolutionize the home construction industry. The firm to be purchased has only a minor share of this growing market, but the market is expected to grow rapidly. In which of the following categories of business in the BCG matrix would this firm be placed?

• A) Cash cows
• B) Stars
• C) Spinoffs
• D) Question marks
• E) Dogs

Calculate and interpret frequency and percentage in various contexts.

Differentiate between types of graphs for data visualization (pie graph, bar chart, histogram, frequency polygon).

Understand the concept of levels of measurement (nominal, ordinal, interval, ratio).

Analyze frequency data within the context of real-life scenarios.

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Definitions:

Capital Intensity Ratio

A metric that measures the amount of capital needed per unit of output, indicating how capital-intensive a business operation is.

Operating Capacity

The maximum output that an organization can produce with its current resources and constraints.

Dividend Payout Ratio

A financial metric that shows what portion of a company's earnings are distributed to shareholders in the form of dividends.

External Financing

Describes the funds a business acquires from sources outside the company, such as bank loans, venture capital, or issuing bonds and stocks to support operations or expansion.