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:

Implementation Phase

The stage in a project or strategy where plans are put into action and executed.

Business Plan

A road map for the entire organization for a specified future period of time, such as one year or five years.

Product Development

Product development is the complete process of bringing a new product to market, encompassing idea generation, concept testing, design, engineering, production, and marketing.

Market Development

Market development is a growth strategy where a business seeks to sell its existing products into new markets to attract additional customers.