Which of the Following Is Not a Downside of Portfolio

question 54

Multiple Choice

Which of the following is not a downside of portfolio models used to assist a firm in balancing its portfolio of businesses?

• A) Portfolio models compare SBUs on only two dimensions under the assumption that these are the only factors that matter.
• B) Portfolio models view each SBU as a stand-alone entity.
• C) Portfolio models rely on loose rules regarding resource allocation across the SBUs.
• D) The evaluation process risks becoming mechanical and oversimplified.

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Definitions:

Compound Motor

A type of DC motor that combines both series and shunt winding to offer high starting torque and good speed regulation.

Series and Shunt

Terms used to describe configurations in electrical circuits; "series" refers to components connected end-to-end, while "shunt" refers to components connected parallel to each other.

Constant Speed Motor

A motor that maintains a uniform speed under varying loads, often achieved through feedback mechanisms or specialized designs.

DC Motor

A type of electric motor that runs on direct current electricity, used in a wide variety of applications from vehicles to industrial machinery.