The Principal Means by Which a Firm Changes Its Portfolio

question 12

Multiple Choice

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

• A) internal diversification.
• B) mergers and acquisitions.
• C) joint ventures.
• D) alliances.

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Definitions:

Liability

A financial obligation or debt that an entity owes to another party, which is expected to be paid in the future.

Unearned Revenue

Money received by a company for goods or services yet to be provided, recognized as a liability until the service or product is delivered.

General Journal

The general journal is a primary accounting record used to document all business transactions in chronological order, detailing debits and credits for each entry.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.