Which of the Following Statements Regarding Diversification Analysis Is Most

question 58

Multiple Choice

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

• A) Companies should only use diversification analysis if they 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 market and for any market, there is both a current and a new product.
• C) Most companies discover that there is at least one product that is targeted to the wrong market.
• D) Diversification analysis is only effective for consumer products.
• E) Diversification analysis is used to forecast and calculate industry sales for new products.

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Definitions:

Self-correcting

Capable of making necessary adjustments or corrections on one's own to maintain accuracy or functionality.

Analysis

A detailed examination of the elements or structure of something, typically as a basis for discussion or interpretation.

Naturalistic Observation

A research method involving observing subjects in their natural environment without intervention.

Grocery Shoppers

Individuals engaging in the activity of buying food and other items from grocery stores or supermarkets.