Solarcom Is a 30-Year-Old Information Technology Company That Owns Several

question 12

Multiple Choice

Solarcom is a 30-year-old information technology company that owns several subsidiaries.One of its subsidiaries is Atlantix Global Systems,which is one of the leading wholesalers for refurbished computer equipment that has a large share of an industry that is growing worldwide.According to the BCG business portfolio analysis framework,Atlantix Global would MOST LIKELY be classified as a __________.

• A)dog
• B)cash cow
• C)question mark
• D)hedgehog
• E)star

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Definitions:

Discount

A reduction from the usual cost of something or the process of determining the present value of future cash flows.

Political Risk

In international business, the chance that the value of a firm’s investment in a foreign country will be reduced by political actions of either the foreign government or terrorists.

Exchange Rate Risk

The risk that international trade dealings will earn less than expected because of movement in exchange rates.

Economic Risk

The possibility of loss caused by macroeconomic or market conditions, such as changes in interest rates or recessions.