Which Factor Is a Limit to the Ability of Diversification

question 141

Multiple Choice

Which factor is a limit to the ability of diversification to reduce risk?

• A)losses due to bad decision making
• B)key raw materials
• C)industrial life cycles
• D)economic losses from bad weather

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Definitions:

Time Horizon

The length of time over which an investment, project, or strategic decision is expected to yield results or be evaluated.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone and is used to generate and prioritize ideas.

Critical Incident Technique

A method used in organizational development and research to gather significant actions or events that have impacted a project or outcome, for the purpose of learning and improvement.

Delphi Technique

The Delphi Technique is a structured communication method used for systematic interactive forecasting by experts of the likelihood and outcome of future events.