One of the Strengths Inherent in the Use of the BCG

question 14

Multiple Choice

One of the strengths inherent in the use of the BCG business portfolio analysis is that it

• A) is based solely on company perception rather than actual data.
• B) considers all factors that might impact an SBU's value to an organization.
• C) acts as a strong motivational tool for employees in SBUs that have been labeled "dogs" or "question marks."
• D) forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers or cash users in the future.
• E) identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings.

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Definitions:

Aging

A method used to categorize accounts receivable based on the length of time an invoice has been outstanding, helping businesses to manage and collect debts effectively.

Adjusting Entry

A journal entry made at the end of an accounting period to record revenues and expenses in the correct period.

Bad Debt Expense

The portion of receivables that is estimated to be uncollectible, recognized as an expense in the income statement.

Maturity Value

The total amount that will be paid to the holder of a financial instrument at its maturity date, including principal and any accrued interest.