An Appropriate Reason to Diversify Is to Pool the Risk

question 25

True/False

An appropriate reason to diversify is to pool the risk from several business ventures to create a more stable income stream.

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Definitions:

Self-efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Personal Goals

Individual objectives that a person aims to achieve, which can be short-term or long-term and vary in nature.

Achievable Goals

Objectives that can realistically be accomplished within a given timeframe and with available resources.

McGregor

Douglas McGregor, an American social psychologist who proposed the Theory X and Theory Y concepts of employee motivation and management.