Diversification Is Best Described as Which of the Following

question 56

Multiple Choice

Diversification is best described as which of the following?

• A)Existing products in new markets
• B)Existing products in existing markets
• C)New products for new markets
• D)New products for existing markets

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Definitions:

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.

Cost Method

An accounting method that values inventory and cost of goods sold based on the purchase cost of the materials.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Long-term Investment

Investments held by an entity for an extended period, typically more than one year, such as bonds, stocks, or real estate.