Answer:
The answer is "9%".
Explanation:
Please find the complete question in the attached file.
The formula for calculating the net return rate:
Therefore, the net return rate is 9%.
Answer:
Correct Answer:
a. are discarded for purposes of decision making for all future plans.
Explanation:
In business organization, there will be situations where there will be need to ration the capital used in the business for effective running of the business. <em>When there is an ongoing project, the project expenses would be rationed in such a way that, relevant ones would receive attention from the megre capital fund while unfunded proposal would be discarded.</em>
Answer:
Limitation of the BCG model include;
• Market share and industry growth are not the only factors of profitability.
• Business can only be classified to four quadrants.
• It does not define what ‘market’ is.
• Does not include other external factors that may change the situation completely.
Explanation:
Necessary steps managers should take to overcome the limitations;
• BCG matrix can be used to analyze SBUs, separate brands, products or a firm as a unit itself. Which unit will be chosen will have an impact on the whole analysis.
• It is important to clearly define the market to better understand firm’s portfolio position.