Which of the Following Is Not a Downside of Portfolio

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.