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:

Fully Depreciated

Term used for an asset that has reached the end of its useful life, with its cost fully allocated across the accounting periods it was in use.

Disposed

This term refers to the action of getting rid of an asset or property, often through a sale, exchange, retirement, or destruction.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting the company's reputation, customer relations, and other non-physical assets.

Assets And Liabilities

Elements of a company's financial statements where assets represent resources owned, and liabilities represent obligations owed to others.