The Principal Means by Which a Firm Changes Its Portfolio

question 46

True/False

The principal means by which a firm changes its portfolio of businesses is through alliances.

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Definitions:

Income Tax Liability

The total amount of taxes owed by an individual or a business entity to the federal, state, or local government based on income.

Operating Income

Income generated from the core business operations of a company, excluding income from investments and expenses not related to the primary business activities.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on the income or profit levels.

Intra-entity Transactions

Transactions that take place between two divisions or units within the same company, affecting only internal accounts.