Diversification Is a Strategy Whose Goal Is Growth,based On

question 37

Multiple Choice

Diversification is a strategy whose goal is growth,based on:

• A) selling more of the firm's product or service to the existing customer base.
• B) selling in areas or to groups previously not served by the business.
• C) selling existing customers a product or service they have never bought before.
• D) adding new products or services to the firm's existing collection of offerings.

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Definitions:

Sales

The total amount of money received by a company for goods or services sold during a certain time period.

Margin of Safety Ratio

This ratio measures the difference between actual or expected sales and sales at the break-even point, indicating the buffer against a loss.

Dollar Amount

Refers to the value or cost of something expressed in units of currency.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.