Diversification Reduces

question 107

Multiple Choice

Diversification reduces

• A)only market risk.
• B)only firm-specific risk.
• C)neither market or firm-specific risk.
• D)both market and firm-specific risk.

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Definitions:

Retailing

The process through which companies sell products and services to consumers for their personal or family use.

Full-Service

Pertaining to businesses or services that offer a comprehensive range of solutions or amenities to their customers, leaving no need unaddressed.

Limited-Service

Refers to businesses or offerings that provide a selective range of services as opposed to comprehensive, full-service options.

Merchant Wholesalers

Businesses that buy goods in large quantities from producers, store them, and then resell them to retailers or other businesses.