Why Do Businesses Often NOT Pursue the Best Mix of Projects

question 2

Multiple Choice

Why do businesses often NOT pursue the best mix of projects in their project portfolio?

• A)Projects are selected based on criteria that are not always consistent with the business strategy.
• B)Businesses do not use enough financial metrics in selecting projects.
• C)Too much emphasis is placed on feasibility.
• D)Selection committees neglect to use a portfolio value matrix.

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Definitions:

Per Capita Consumption

The average consumption of a good or service per individual within a population.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's streams, lakes, and oceans and the fluids of most living organisms.

Energy

The capacity to do work, which comes in various forms such as kinetic, potential, thermal, electrical, chemical, nuclear, and others, and can be transformed from one form to another.

Commodities Price Index

An index that measures changes in the general price level of commodities traded in the global markets, like metals, food, and energy.