Stenikson has three strategic business units (SBUs)—video games, fashion, and electronics. The company is planning to invest more money into its video games unit because it is a fast-growing market, even though the company has a very small share in the market. In the context of the BCG matrix, which of the following categories of SBUs best describes the video games unit?
a. Stars
b. Cash cows
c. Question marks
d. Dogs

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?