Which of the Following Statements Regarding Diversification Analysis Is Most

question 33

Multiple Choice

Which of the following statements regarding diversification analysis is most accurate?

• A)Diversification analysis should only be used by companies that are well established; new companies that use this process run the risk of trying to do too much too soon.
• B)For any product there is both a current and a new product and for any product there is both a current market and a new market.
• C)Most companies will discover, through diversification analysis, that there is at least one product that is completely targeted to the wrong market.
• D)Diversification analysis is only effective for consumer products.
• E)Diversification analysis is used to forecast and calculate industry figures for potential new products.

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