ACCA Strategic Business Leader (SBL) Practice Exam

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Study for the ACCA SBL Exam. Utilize quizzes with multiple choice questions, hints, and explanations to enhance your learning. Prepare confidently for your exam!

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What term refers to businesses or products that have low relative share in less attractive, low-growth markets?

Stars
Question Marks
Cash Cows
Dogs

The correct answer is: Dogs

The term that refers to businesses or products with low relative market share in less attractive, low-growth markets is indeed "Dogs." This classification, derived from the BCG (Boston Consulting Group) Matrix, indicates that these entities do not perform well and typically generate low profits, if any. They're characterized by their inability to grow and often represent a drain on resources, as they require investment but do not yield substantial returns. In contrast, "Stars" are products with high market share in fast-growing industries, indicating potential for significant revenue generation. "Question Marks," or problem children, are businesses with low market share in high-growth markets, representing growth potential but requiring further investment decisions. "Cash Cows" are products with high market share in mature, low-growth markets; they require little investment yet generate substantial cash flow. Thus, "Dogs" distinctly stand out as the category for low-share, low-growth products, substantiating their position in a less favorable market context.