In the Portfolio Matrix, Characteristics of Goods and Services in the Leverage

question 6

Multiple Choice

In the portfolio matrix, characteristics of goods and services in the leverage quadrant are:

• A) competitive supply market, substitution is possible, price per unit is important.
• B) competitive supply market, substitution is possible, and total cost is a primary focus.
• C) few suppliers with adequate capability so substitution and switching are difficult.
• D) item substitution is possible, switching is difficult, and many suppliers are available.
• E) item substitution and supplier switching are possible, but few suppliers are capable.

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Definitions:

Aggregate

A total or sum made from individual parts.

Legal Entity

An organization or structure that is recognized by law as having rights and responsibilities, such as entering into contracts, owning property, and being subject to litigation.

Limited Liability Company

A business structure that offers personal asset protection to its owners while allowing various tax benefits.

Title

The legal right to own, possess, or use a particular piece of property or asset.