Which of the Following Is Closely Associated with the Diversification

question 6

Multiple Choice

Which of the following is closely associated with the diversification strategy?

• A)Entering new markets with little competition
• B)Increasing overhead production costs
• C)Decreasing the prices of existing products
• D)Selling modified products to the same customers

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Definitions:

Trading To Available-For-Sale

The process of reclassifying a security from being actively traded to being held with the intention not to sell in the near term.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all non-owner changes in equity such as unrealized gains and losses.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Trading Securities

Financial instruments that are bought and sold for the purpose of generating profits on short-term fluctuations in price.