Which of the Following Best Illustrates Diversification

question 81

Multiple Choice

Which of the following best illustrates diversification?

• A)A company that produces many different products decides to produce fewer.
• B)After selling stock, corporate management spends funds on projects with greater risks than shareholders had anticipated.
• C)Instead of holding only the stocks of companies engaged in the banking business, a person decides to hold stock in a number of different companies producing different goods and services.
• D)A person decides to purchase only stocks that have paid high dividends in the past.

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Definitions:

New Buy

A purchasing situation in which a buyer or company makes a significant purchase of a product or service for the first time, often involving considerable research and decision-making.

T.J.Maxx

A subsidiary of TJX Companies, Inc., known for selling discounted brand-name clothing, footwear, and home goods.

B2B Organization

A business that primarily sells products or services to other businesses rather than to individual consumers.

Reseller

A reseller is an entity that purchases goods or services with the intention of selling them to others, rather than consuming or using them.