Which of the Following Is True About Defensive Portfolio Strategies

question 54

Multiple Choice

Which of the following is true about defensive portfolio strategies?

• A)They are more growth oriented than offensive portfolio strategies.
• B)They aim to protect important strategic market positions.
• C)They are most commonly implemented in attractive markets by businesses with a weak competitive position.
• D)They are most commonly implemented in unattractive markets by businesses with a high competitive position index.
• E)They aim to reduce short-run cash flow and profit performance,to promote growth in the long-run.

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Definitions:

Collection Policies

Guidelines established by a business to manage the collection of accounts receivable or debts owed to it.

Subsidiary Ledger

a detailed ledger that contains the financial transactions of a specific subsidiary account, summarizing its details, and supporting the general ledger.

Control Account

A general ledger account that summarizes the balances of a set of detailed subsidiary ledger accounts.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source of information used to create financial statements.