A business portfolio refer to a company's asset list. It is a combination of various products, services and business units that make up a business.
Business portfolio involves proper planning for the betterment of a company. First, the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment.
In order to conduct a portfolio analysis there are few steps which a company needs to follow- analyze the current situation, establish investment objectives, determine asset allocation, select investment options, monitor, measure, and rebalance.
Hence, the analysis of the business portfolio is important as it helps a company to decide to whether its businesses should receive more or less investment.
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