Which One of the Following Is True About the GE

question 74

Multiple Choice

Which one of the following is true about the GE Multifactor Portfolio Matrix?

• A)Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly.
• B)Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively.
• C)The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk associated with product development.
• D)In the matrix,businesses above and to the left of the diagonal are the weakest and serious candidates for divesture.
• E)This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

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Definitions:

General Equilibrium Analysis

An economic theory that considers all markets and factors simultaneously to understand how they interact and reach a state of balance.

Secondary Changes

Consequential modifications or adjustments that occur as a result of primary actions or policies.

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline, used primarily to fund transportation projects.

General Equilibrium

A state in which all markets in an economy are in simultaneous equilibrium, with supply equaling demand in each market.