The Object of Diversification Is

question 69

Multiple Choice

The object of diversification is:

• A) to reduce risk and fluctuations in income.
• B) to reduce risk, but not to reduce fluctuations in income.
• C) to reduce fluctuations in income, but not to reduce risk.
• D) neither to reduce risk, nor to reduce fluctuations in income.

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Definitions:

Creative Entrepreneur

An individual who innovates and creates new products, services, or business models, often in the arts, media, or technology sectors.

Profitably Exploit

Involves leveraging resources or opportunities in a way that maximizes profit.

Buyer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay.

Seller Surplus

The difference between the actual selling price of a good and the seller's minimum acceptable price.