After Management Has Identified the Key Businesses Making Up Its

question 141

Multiple Choice

After management has identified the key businesses making up its company,what is the next step in portfolio analysis?

• A) identifying businesses in which to invest
• B) assessing the attractiveness of its SBUs
• C) deciding whether to harvest any businesses
• D) completing short-range planning
• E) identifying SBUs

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an active market or valuation models, indicating what a willing buyer and seller would agree to exchange it for.

Accrued Interest

Interest that has accumulated over a period of time but has not yet been paid or charged.

Semiannual Interest

Interest that is paid or calculated twice a year on a loan or investment.

Available-for-sale Securities

Available-for-sale securities are financial assets that are neither classified as held-to-maturity securities nor trading securities, and are recorded at fair market value on the balance sheet.