The Purpose of Diversification Is

question 37

Multiple Choice

The purpose of diversification is:

• A) To capture more consumers
• B) To satisfy the mission and vision
• C) To build a portfolio of businesses much like a portfolio of stock
• D) To spread out risk and opportunities over a larger set of businesses

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Definitions:

Unknown Quantity

A variable or value in mathematics and science that is not specified or determined, often represented by letters such as x or y in equations.

Proportion

A part or share of the whole, often used in statistics and mathematics to describe the relationship between numbers or quantities.

Lowest Terms

The simplest form of a fraction when the numerator and denominator are reduced to their smallest possible numbers.

Ratio

An expression that compares two quantities in a specified order.