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According to the GE Multifactor Portfolio Matrix,businesses Falling in Cells

question 45

True/False

According to the GE Multifactor Portfolio Matrix,businesses falling in cells that form a diagonal from lower left to upper right are the strongest and the ones the company should invest in and help to grow.


Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the available capital for day-to-day operations.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Earnings Per Share

A financial metric that divides a company’s net income by the number of outstanding shares, indicating the profit earned per share of stock.

Price-Earnings Ratio

A financial indicator that evaluates the relationship between a company’s current stock price and its earnings per share.

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