Which of the Following Is NOT an Example of Diversification

question 36

Multiple Choice

Which of the following is NOT an example of diversification in financing?

• A) raising funds in more than one market
• B) raising funds in more than one country
• C) diversifying sales
• D) All of the above qualify.

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Definitions:

Comparative Advantage

The capability of an entity to manufacture a product or provide a service at a reduced opportunity cost compared to its competitors.

Opportunity Cost

The cost of foregone alternatives, the value of the next best alternative that is given up when making a decision.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors, leading to more efficient trade and production patterns.

Absolute Advantage

A situation in which a country, individual, or company can produce a particular good or service more efficiently than another party, using the same amount of resources.