Prime Loader has three strategic business units (SBUs)-railway lines, banking, and coal mining. Because of a small market share, the company is not earning a profit in the banking sector, even though the banking sector is a fast-growing market. In the context of the BCG matrix, which of the following categories of SBUs best describes the banking unit?
A) Stars
B) Cash cows
C) Question marks
D) Dogs

Question

Quizplus · Accepted Answer

The banking unit is not earning a profit despite being in a fast-growing market, indicating that it has a small market share and is not yet established. This suggests that it is a "question mark" SBU in the BCG matrix, which represents businesses with low market share but high market growth potential.

Prime Loader Has Three Strategic Business Units (SBUs)-Railway Lines, Banking