Portfolio Models Are Used to Assist a Firm in

question 42

Multiple Choice

Portfolio models are used to assist a firm in

• A) achieving a portfolio of businesses.
• B) unbalancing its portfolio of businesses.
• C) achieving a balanced portfolio of businesses.
• D) generating excess cash.

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Definitions:

Demand Price

The highest price consumers are willing to pay for a good or service at a given quantity, reflecting the value placed on the item by the market.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Imposes a Quota

A restriction, set by a government, on the maximum number of units of a particular product that can be imported or exported within a given period.

Equilibrium

A market condition where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price.