Lesson 2.3.7

2.3.7 Boston Matrix Quiz: NCFE Business & Enterprise, Unit 2

20 questions

In partnership with Revision Ninja

The Boston Matrix classifies each product by market share and market growth into stars, cash cows, question marks and dogs. This lesson explains what each box means, how a product usually moves between them, where spare cash should go, and why a balanced product portfolio matters.

Key points

  • The Boston Matrix compares products on market share and market growth, giving four boxes from high and low of each.
  • Stars have high share in a fast-growing market, but much of their cash goes on defending the lead.
  • Cash cows have high share in a slow market, need little investment and produce surplus cash.
  • Question marks have low share in a fast-growing market and need heavy investment to become stars, or should be dropped.
  • Dogs have low share in a market that is not growing, so they are usually withdrawn or sold.
  • A typical path runs from question mark to star, then cash cow, then dog as the market matures.
  • A firm with only cash cows and dogs is weak because it has nothing growing to replace them.

Key terms

Boston Matrix
A tool that plots products by market share and market growth to guide decisions.
Market growth
How fast the whole market for a product is expanding.
Star
A product with high market share in a fast-growing market.
Cash cow
A product with high market share in a slow-growing market that generates spare cash.
Question mark
A product with low market share in a fast-growing market, with an uncertain future.
Dog
A product with low market share in a market that is not growing.
Product portfolio
The full set of products a business sells, which should be balanced.

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The 20 questions

  1. What are the two axes used in the Boston Matrix?

    • Price and quality
    • Market share and growth
    • Cost and demand
    • Revenue and profit
  2. A brand accounts for 15% of all UK sales in its sector. What does this represent?

    • Market growth
    • Market share
    • Profit margin
    • Cost reduction
  3. Sales of electric scooters across the whole UK rose 30% last year. Which Boston Matrix measure does that describe?

    • High market growth
    • A wide product range
    • High market share
    • A large profit margin
  4. A product has a high share of a market that is barely growing. Which quadrant is it in?

    • Stars
    • Cash cows
    • Question marks
    • Dogs
  5. Where do firms usually invest the surplus cash from cash cows?

    • Stars and question marks
    • Paying off staff wages
    • Buying office stationery
    • Only in dogs
  6. Which Boston Matrix category typically generates the highest net cash inflow for a firm?

    • Star
    • Dog
    • Cash Cow
    • Question Mark
  7. Why is a business selling only cash cows in a weak long-term position?

    • Profits are too high
    • Costs are zero
    • Market share is missing
    • Nothing is growing
  8. According to the Boston Matrix, what should happen to a dog product?

    • Lower the price
    • Increase advertising
    • Withdraw or sell
    • Expand production
  9. What strategic choice does a question mark product pose for a firm?

    • Invest or drop
    • Reduce marketing forever
    • Ignore completely
    • Harvest profits immediately
  10. Why do star products leave little spare cash despite high sales revenue?

    • High defending costs
    • Low selling prices
    • Poor market demand
    • High wage inflation
  11. What does the Boston Matrix help a business analyse?

    • Supply chain costs
    • Employee performance
    • Financial liquidity
    • Product portfolio
  12. Which category in the Boston Matrix represents high market share and high market growth?

    • Stars
    • Dogs
    • Question Marks
    • Cash Cows
  13. What are the market characteristics of a Cash Cow in the Boston Matrix?

    • Low growth, low share
    • High growth, low share
    • High growth, high share
    • Low growth, high share
  14. Which action moves a Question Mark product into the Stars box?

    • Reducing staff numbers
    • Raising prices sharply
    • Cutting all promotion
    • Heavy marketing spend
  15. What key insight does the Boston Matrix provide for a business?

    • Exact sales figures
    • Product range balance
    • Production staff numbers
    • Daily profit margins
  16. Which category in the Boston Matrix typically requires less investment to maintain?

    • Dogs
    • Stars
    • Cash Cows
    • Question Marks
  17. Which two variables form the grid of the Boston Matrix?

    • Cost and revenue
    • Growth and share
    • Supply and demand
    • Price and volume
  18. What are the market characteristics of a Dog in the Boston Matrix?

    • High growth, low share
    • High growth, high share
    • Low growth, low share
    • Low growth, high share
  19. What is the main risk for a business with only Cash Cows and Dogs?

    • Shrinking sales revenue
    • Excessive development costs
    • Unmanageable high growth
    • Immediate cash shortages
  20. What action does a business typically take with a Dog product?

    • Increase production heavily
    • Rebrand as a star
    • Withdraw from sale
    • Double the price

All NCFE Business & Enterprise quizzes