Which Statement Regarding Diversification Analysis Is Most Accurate

question 46

Multiple Choice

Which statement regarding diversification analysis is most accurate?

• A) Companies should only use diversification analysis if they are well-established; new companies that use this process run the risk of trying to do too much too soon.
• B) For any product, there is both a current and a new market; for any market, there is both a current and a new product.
• C) Most companies discover that there is at least one product that is targeted to the wrong market.
• D) Diversification analysis is only effective for consumer products.
• E) Diversification analysis is used to forecast and calculate industry sales for new products.

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Definitions:

External Control Orientation

The belief that one's outcomes or fate are determined by external forces beyond one's control.

Initiative

The ability to take the lead and start actions independently without needing encouragement or direction from others.

Coercion

The practice of compelling someone to act in a certain way by use of force or threats.

Genetic Factors

Inherited attributes or characteristics from an individual's biological parents influencing physical appearance, health, and behavior.