Which of the following represents a business unit

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81. Which of the following represents a business unit that shows rapid growth but poor profit margins?
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a. star b. cash cow c. problem child d. loss leader e. dog ANS: C A problem child, also called a question mark, has a low market share in a high-growth industry. PTS: 1 REF: 23 OBJ: 02-6 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Strategy 82. Before Heinz sold its 9-Lives brand cat food unit, the company identified the product as having a low market share in a high-growth market. The portfolio matrix would classify 9-Lives as a(n): PTS: 1 REF: 23 OBJ: 02-6 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Strategy 83. John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies and is currently producing much less than the desired level of profit- ability in a high-growth industry. According to the portfolio matrix, Harland would label its Financial Solutions division as a(n): PTS: 1 REF: 23 OBJ: 02-6 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Strategy 84. In the portfolio matrix, a business unit that has low growth potential and a small market share is called a(n): PTS: 1 REF: 23 OBJ: 02-6 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Strategy
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85. All of the following are basic strategies resulting from a portfolio analysis EXCEPT: a. harvest b. build c. hold d. divest e. milk ANS: E The four strategies are build, hold, harvest, and divest. PTS: 1 REF: 24 OBJ: 02-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Strategy 86. John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies, which is a growing industry. This division is currently not produ- cing at the desired level of profitability, but Harland plans to turn the division into a success by acquir- ing other companies that develop similar software. Harland would be engaging in a _____ strategy. PTS: 1 REF: 24 OBJ: 02-6 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Strategy
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