Because a Business Firm Can Be Viewed as a Portfolio

question 48

True/False

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

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Definitions:

Comparison Level

A standard against which current experiences or relationships are judged, based on past experiences.

Norm of Homogamy

A social norm that suggests individuals tend to form romantic relationships with others who are similar to them in aspects like socio-economic status, beliefs, or age.

Romantic Love Ideal

Five beliefs regarding love, including the belief (1) in love at first sight, (2) that there is one and only one true love for each person, (3) that love conquers all, (4) that our beloved is (nearly) perfect, and (5) that one should follow his or her heart.

Living-Alone-Together

A relationship arrangement where committed partners maintain separate residences but are in a long-term, intimate relationship.