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How Can the Portfolio Strategy Be Used to Help Managers

Question 28

Multiple Choice

How can the portfolio strategy be used to help managers acquire companies that fit well with the rest of their corporate portfolio?


A) The fewer businesses in which a corporation competes,the smaller its overall chances of failing. 
B) Risk can be reduced through related diversification-creating or acquiring companies with related core capabilities. 
C) Invest the profits and cash from mature,slow-growth businesses into newer,faster growing businesses. 
D) The most significant advantage of the portfolio strategy is the ability to categorize businesses as stars,exclamation points,question marks,and dogs.

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