Because a Business Firm Can Be Viewed as a Portfolio

question 58

True/False

Because a business firm can be viewed as a portfolio of assets, it is important that the firm maintain a diversified portfolio of assets.

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Definitions:

Mid-Ocean Ridge

A long mountain range on the floor of the ocean, associated with seafloor spreading.

Island Arc

A generally curved belt of volcanic islands above a subduction zone; also used as an adjective to refer to this setting.

Linear Island Chain

A series of islands aligned in a straight or nearly straight line, often formed by volcanic activity along a tectonic plate boundary.

Mid-Ocean Ridge

An underwater mountain range, formed by plate tectonics, that stretches across the ocean floor and is associated with seismic and volcanic activity.