Diversification Involves Creating a New Company Whose Stock Is Owned

question 45

True/False

Diversification involves creating a new company whose stock is owned by investors.

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Definitions:

Derived Demand

Demand for a good or service that occurs as a result of the demand for another good or service.

Consumer Products

Products purchased by the ultimate consumer.

Industrial Services

Services offered to businesses operating within industrial sectors, focusing on supporting production, efficiency, and operational needs.

Technical Nature

Refers to aspects or tasks that require specialized knowledge or skills, particularly in science, technology, engineering, and mathematics.