The Practice of Not Putting All of Your Eggs in One

question 54

Multiple Choice

The practice of not putting all of your eggs in one basket is an illustration of ________.

• A)variance
• B)diversification
• C)portion control
• D)expected return

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Definitions:

Exit Mechanisms

Strategies or methods used by investors, entrepreneurs, or organizations to withdraw their stake from an investment or business venture.

Union Wage Advantage

The higher wages earned by unionized workers compared to their non-union counterparts due to collective bargaining.

Misallocation

The inefficient distribution of resources, often leading to missed opportunities or wasted potential.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.