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:

Total Quality Management

A comprehensive management approach that focuses on continuous improvement of processes and products, emphasizing quality assurance through every step of production.

Management By Objectives

A performance management approach where managers and employees work together to set, record, and monitor goals for a specific period to improve organizational performance.

Departmental Goals

Specific objectives set by individual departments within an organization to support overall company objectives.

Standard Normal Distribution

A bell-shaped distribution that is symmetric about a mean of zero and with a standard deviation equal to one, used in many statistical analyses.