Business Portfolio Analysis Refers to

question 29

Multiple Choice

Business portfolio analysis refers to

• A) a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
• B) a technique that managers use to subjectively evaluate performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a single expense.
• C) a technique that managers use to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a collection of separate investments.
• D) an analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm.
• E) a tool that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

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Definitions:

Estimated Uncollectible

An accounting term referring to the portion of accounts receivable that a company does not expect to collect.

Allowance Method

is an accounting technique that estimates and reports the likely amount of uncollectible accounts receivable as an allowance for doubtful accounts.

General Ledger Account

A comprehensive record containing all the financial transactions of a business.