According to the Boston Consulting Group approach, how can a company classify its SBUs on a growth-share matrix?
What will be an ideal response?
The growth-share matrix defines four types of SBUs:
1. Stars: Stars are high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.
2. Cash cows: Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.
3. Question marks: Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.
4. Dogs: Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
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Financial liabilities include all of the following except
a. mortgages payable b. current maturities of long term debt c. accrued taxes d. bonds payable
The principles of guestology can be applied appropriately to ______.
a. internal customers b. external customers c. both internal and external customers d. neither internal nor external customers
Which of the following statements is consistent with principle-based ethics?
A. Although certain acts are wrong, they should be performed for the overall happiness they may produce. B. An act that produces the greatest beneficial consequences is the ethically right thing to do. C. Obligations, responsibilities, and commitments do not determine the correct approach to ethics. D. Individuals have rights that should not be sacrificed in order to generate a net increase in the collective good.
Opportunity costs are irrelevant costs
Indicate whether the statement is true or false