The Purpose of Business Portfolio Analysis Is to

question 98

Multiple Choice

The purpose of business portfolio analysis is to

• A) add or delete product line and brand extensions.
• B) search for growth opportunities from among current and new markets as well as current and new products.
• C) alter a product's characteristic, such as its quality, performance, or appearance, to increase its value to customers and increase sales.
• D) determine which strategic business unit or offering generates cash and which one requires cash to fund the organization's growth opportunities.
• E) seek opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

---

Definitions:

Managerial Accounting

The process of identifying, measuring, analyzing, and interpreting accounting information by business managers to make informed strategic decisions.

Company's Assets

A company's assets are resources owned by the company that have economic value and can be used to meet its debts, commit to spending, or invest in future business activities.

Budgeted Balance Sheet

A budgeted balance sheet is a financial statement that projects the financial position of a company at a future point in time, detailing assets, liabilities, and equity based on anticipated financial activities.

Financial Budgets

Projections of a company's income, expenditures, and capital needs, used to manage spending and achieve financial goals.