Question

A project is exceptionally risky might still be undertaken by a firm if they have several other projects underway that are considered more of a sure thing. This approach to project selection is best described by the criterion called:

A. strategic "fit".
B. risk.
C. desire for portfolio balance.
D. top management pressure.

Answer 1

Answer: The correct answer is (C).

Explanation: If an exceptionally risky project is undertaken by a company though they have several projects on the line which maybe considered more of easy to solve, the approach project selection is A DESIRE FOR PORTFOLIO BALANCE, in order to settle all available projects on hand.