The Branching Out of Financial Conglomerates into Several Product Lines

question 69

Multiple Choice

The branching out of financial conglomerates into several product lines that reduces the dependence of the financial conglomerate on any single product line is known as

• A)risk-reduction.
• B)diversification.
• C)economies of scope.
• D)risk-abatement.

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Definitions:

Geothermal Energy

Heat energy generated and stored within the Earth, harnessed by humans for heating and generating electricity with minimal environmental impact.

Molten Rock

Liquid rock material formed under the earth's surface at extremely high temperatures, known as magma, or on the surface as lava from a volcanic eruption.

Methanol

Methanol, also known as methyl alcohol, is a chemical compound used as a solvent, antifreeze, fuel, and as a denaturant for ethanol. It is toxic to ingest.

Ethanol

A biofuel derived from corn, sugarcane, or other plant materials, used as an alternative to gasoline.