SBUs with a Low Share of Slow-Growth Markets That May

question 256

Multiple Choice

SBUs with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as __________.

• A)dogs
• B)cash cows
• C)stars
• D)question marks
• E)hedgehogs

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Definitions:

Breakeven Point

The point at which total costs and total revenue are equal, meaning there is no profit or loss.

Planning Gap

The difference between future desired performance levels and the projected level of performance if current operations continue without changes.

Sales Differential

The difference in sales volume or revenue achieved in different markets, periods, or between actual and projected sales.

Profitability Analysis

The process of evaluating the ability of a company to generate profits from its operations, typically involving an assessment of revenues, costs, and profit margins.