Why Would a Firm Offer a Deep Assortment of Products

question 10

Multiple Choice

Why would a firm offer a deep assortment of products in its product portfolio?

• A) to attract a wide range of customers and market segments
• B) to capitalize on the firm's reputation
• C) to diversify its risk
• D) to maximize differentiation across its product lines
• E) None of the above

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Definitions:

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, where they hold significant influence but not full control.

Excess Amortizations

Amortization expenses that exceed the norm or expectation for a particular asset, typically resulting from an aggressive estimation of the asset's useful life or value.