Diversification

question 3

Multiple Choice

Diversification:

• A) is the process by which risks are shared among many different assets or people.
• B) makes a market more liquid by having intermediaries ready to buy or sell any asset.
• C) is the interest rate at which one would lend if there were no risk of default.
• D) occurs when a borrower fails to pay back a loan according to the agreed-upon terms.

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Definitions:

Interfunctional Scope

Refers to the range of different functions or departments within a company that collaborate and engage with each other to achieve common objectives.

Supply Chain Partners

Businesses or individuals who participate in the supply chain process through providing, manufacturing, or distributing products.

Company Success

The achievement of desired business goals and objectives, often measured by financial performance, market share, or innovation.

Strategic Fit

The alignment of organizational strategies, capabilities, and resources with external opportunities and threats to achieve desired outcomes.