A Company That Desired to Spread Its Risk by Offering

question 63

Multiple Choice

A company that desired to spread its risk by offering a breadth of products and to a variety of markets is engaged in _____________. This approach would reduce unsystematic risk as when one industry was doing poorly, they still could profit from customers in other industries.

• A) diversification
• B) product development
• C) market development
• D) market penetration

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Definitions:

Farm Subsidies

Government payments provided to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such goods.

Political Logrolling

A practice in politics where two or more parties exchange support for each other's benefit, often seen in legislative voting.

U.S. Price Support Program

Government initiatives designed to stabilize or increase market prices typically for agricultural products, by buying excess supply or offering subsidies.

Freedom To Farm Act

A U.S. federal law enacted to reduce government control over farming operations, allowing farmers more freedom in making planting and harvesting decisions.