Which of the Following Statements Regarding Diversification Analysis Is Most

question 315

Multiple Choice

Which of the following statements 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.

---

Definitions:

Defaulted

Refers to failing to fulfill a legal obligation, especially failure to pay a debt or appear in court as required.

Foreclosed

The legal process by which a lender takes possession of a property due to the borrower's failure to pay the mortgage.

Improvements

Enhancements or upgrades made to a property or a product, increasing its value or functionality.