Question

(MCQ- 1. Which of the following is not a downside of portfolio models used to assist a firm in balancing its portfolio of businesses?

• Portfolio models compare SBUs on only two dimensions under the assumption that these are the only factors that matter.

• Portfolio models view each SBU as a stand-alone entity.

• Portfolio models rely on loose rules regarding resource allocation across the SBUs.

• The evaluation process risks becoming mechanical and oversimplified.

2. Which of the following is not a downside of portfolio models used to assist a firm in balancing its portfolio of businesses?

• alliance partners

• equity analysts

• suppliers

• scientific community

Answer 1

MCQ -1.

Correct answer is Portfolio models rely on loose rules regarding resource allocation across the SBUs.

All other options are downside risk of portfolio models