Two examples of enterprise environmental factors are:

Question

Options

• Aorganizational life cycle and corporate knowledge base.
• Binternal rate of return and net present value (NPV) targets.
• Corganizational risk tolerance and budget constraints.
• Dindustry standards and governmental regulations.

• A
  3% (1)
• C
  3% (1)
• D
  93% (27)

Explanation

Enterprise environmental factors (EEFs) are conditions external to or beyond the direct control of the portfolio team that influence, constrain, or direct portfolio decisions. Industry standards and governmental regulations are classic EEFs because they are externally imposed constraints the organization must comply with, regardless of its own preferences. Internal rate of return and NPV targets (B) are financial decision criteria, not environmental factors. Organizational risk tolerance and budget constraints (C) are internal policies that, while constraining, are set by the organization itself. Organizational life cycle (A) can be an EEF, but corporate knowledge base is an organizational process asset (OPA), not an EEF.

No community discussion yet for this question.