Which of the following is an assumption of the BCG Portfolio Model?
A)Profitability and cash flow will be closely related to sales volume.
B)Return on investment (ROI)will be directly related to sales volume.
C)Cash flow is equal to investment.
D)Investment + Cash flow = Profitability.

Question

Quizplus · Accepted Answer

The assumption of the BCG Portfolio Model is that profitability and cash flow will be closely related to sales volume. It assumes that high sales volume will lead to economies of scale, higher profits, and increased cash flow.

Which of the Following Is an Assumption of the BCG