Which of the Following Helps to Reduce Risk

question 55

Multiple Choice

Which of the following helps to reduce risk?

• A)abstain from risk taking
• B)obtain more information
• C)diversify
• D)All of the above.

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Definitions:

Cost-Leadership Strategy

A competitive strategy focusing on producing goods or services at the lowest cost to outprice competitors.

Differentiation Strategy

A generic business strategy that requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.

Significant Points

Major or important aspects, factors, or considerations in a given context, such as key arguments in a discussion or essential features of a project.

Market Segments

Subsections of a market composed of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.