A Technique That Helps a Firm Search for Growth Opportunities

question 15

Multiple Choice

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is referred to as

• A)diversification analysis.
• B)business portfolio analysis.
• C)a market-product grid framework.
• D)synergy analysis.
• E)market segmentation.

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Definitions:

Cash Collection

The process of gathering all cash payments received from customers, often related to sales or services, improving a company's liquidity.

Budget Slack

The practice of underestimating revenue or overestimating costs while preparing a budget to create a buffer, which can be used to handle unforeseen financial situations.

Planning

The process of setting goals, determining resources needed to achieve those goals, and outlining the steps necessary to accomplish them.

Loose Budgets

A financial plan that allows for higher spending and less stringent controls, often to accommodate for uncertainty or to encourage creativity and innovation.