Business Portfolio Analysis Refers to

question 195

Multiple Choice

Business portfolio analysis refers to

• A)a technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) as though they were a collection of separate investments.
• B)a technique that managers use to subjectively evaluate performance measures and growth targets to analyze its clients' strategic business units (SBUs) as though they were a single investment.
• C)an annual review of a company's performance and anticipated growth sent to stockholders of publically traded companies, prior to elections for the Board of Directors.
• D)an annual review of a company's performance and anticipated growth sent to all stakeholders within that company.
• E)a comparison of a company's growth both in terms of profit and market share relative to its largest competitors.

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Definitions:

LIFO

The last-in, first-out accounting method of valuing inventories.

Economic Earnings

The real flow of cash that a firm could pay out without impairing its productive capacity.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term debts with its current assets.

Current Ratio

Current assets/current liabilities. Measures the ability of the firm to pay off its current liabilities by liquidating current assets.