In the Portfolio Matrix,characteristics of Goods and Services in the Bottleneck

question 8

Multiple Choice

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

• A)item substitution and switching are difficult,but many available suppliers can meet the technical or capacity needs.
• B)item substitution and supplier switching are possible,and several sources of supply are readily available.
• C)item substitution and supplier switching are difficult because few suppliers are available with the capability to meet the unique specification requirements.
• D)substitution is possible,but switching suppliers is difficult even though many suppliers are available.
• E)substitution and supplier switching are relatively easy,but few suppliers have the technical expertise.

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Definitions:

Risk Projects

Investment initiatives or projects that carry a significant degree of uncertainty or risk regarding their outcomes or potential returns.

Capital Sources

Capital sources refer to the origins of the financial resources that businesses use to fund their operations and growth, including debt and equity.

Average-Risk Projects

Investments that present a level of uncertainty and potential returns that are typical or normal compared to other projects within the same industry.

WACC

An estimated average interest rate a company is expected to pay to all its security holders, reflecting the cost of equity and the cost of debt, weighted according to the proportion of equity and debt in the company's capital structure.