Which of the Following Is an Example of Growth by Diversification

question 139

Multiple Choice

Which of the following is an example of growth by diversification?

• A) a company introducing its existing products in a new market
• B) a company introducing new product category in a new market
• C) a company increases its product line in an existing market
• D) a company introducing a new product category in an existing market
• E) a company integrates backward to cut costs

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Definitions:

Debt Offerings

Financial instruments issued by companies to raise capital, promising to pay back with interest.

Government Securities

Financial instruments issued by a government to finance its operations, often considered low-risk investments.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, reflecting an improvement in the standard of living.

General Obligation Bond

A municipal bond backed by the full faith and credit of the issuing authority, with repayment guaranteed by the authority's ability to tax.