In the portfolio matrix, a business unit that has low growth potential and a small market share is called a(n):
A. widow
B. problem child
C. cash cow
D. dog
E. bust
Answer: D
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Which of the following is supported by consideration?
A) written contract B) gift promise C) illusory promise D) preexisting duty
Which of the following statements gives the best definition/description of the risk that is associated with an investment?
A. The total risk of an investment is the chance that it will earn a negative return. B. The total risk of an investment is the chance that it will earn a positive return. C. The total risk of an investment is the chance that it will earn a return other than the one that is expected. D. The total risk of an investment is measured by its beta coefficient. E. The total risk of an investment can be determined by computing its expected return.
Which of the following is true of a business operating under sole proprietorship?
A. It is not considered a separate legal entity. B. It cannot be sold when the owner decides to do so. C. It requires governmental approval when being transferred. D. It has access to unrestricted capital by means of investments.
The salvage value of new equipment should not be considered when using the internal rate of return method to evaluate a project.
Answer the following statement true (T) or false (F)