Which of the Following Is True About the GE Multifactor

question 38

Multiple Choice

Which of the following is true about the GE Multifactor Portfolio Matrix?

• A) Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly.
• B) Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively.
• C) The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk associated with product development.
• D) In the matrix, businesses above and to the left of the diagonal are the weakest and serious candidates for divesture.
• E) This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

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Definitions:

Increasing Production

Refers to the process of augmenting the output or manufacture of goods and services in an economy.

Agricultural Adjustment Act

A New Deal legislation passed in 1933 aimed at reducing agricultural production through financial incentives, thus raising farm prices.

Limit Production

A policy or practice aimed at curtailing the amount of goods manufactured or services provided, often to stabilize or increase prices or to conserve resources.