Diversification Means

question 172

Multiple Choice

Diversification means

• A) allocating all your investment funds into one type of investment.
• B) buying investments on margin.
• C) being knowledgeable about the various types of investment opportunities.
• D) allocating your investment funds to several types of investments.

---

Definitions:

Net Working Capital Turnover

A measure of how effectively a company uses its net working capital to generate sales.

Total Fixed Assets

The combined value of all long-term assets that a company owns, which are not expected to be converted to cash within a year.

Long-Term Liabilities

Long-term liabilities are debts or obligations that are due more than one year in the future, impacting a company's long-term financial sustainability and planning.

Debt-Equity Ratio

The comparative measure of equity and debt in the financing framework for a company's assets.