In most companies, portfolio management is typically done at the SBU or ________ level of the firm.

Question

BlackTom AI · Accepted Answer

Starting with the core idea, portfolio management in many firms is not limited to a single business unit but spans across major segments of the organization.
Option A: corporate. This is the mainstream choice because corporate-level oversight typically coordinates the overall portfolio of SBUs, allocating resources and aligning strategic priorities across the firm.
Option B: product line. While product lines are important components within a portfolio, the management of the entire corporate portfolio usually sits above individual product lines, coordinating trade-offs among multiple lines.
Option C: customer care. This area focuses on service and support for customers rather than the strategic composition and prioritization of the firm’s portfolio across businesses, so it does not represent the usual level for portfolio management.
Option D: sales representative. This role is operational and frontline, dealing with customers and sales execution rather than overarching portfolio decisions that shape the firm’s strategic mix of SBUs.
In summary, because portfolio management requires a cross-business, high-level view to balance corporate objectives, the corporate level is the most appropriate level for this function.

MARKETNG 211-02 FA 25 Exam #1 (Chapters 1-2, 4-7) - Requires Respondus LockDown Browser

In most companies, portfolio management is typically done at the SBU or ________ level of the firm.

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