By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by
A)keeping up in a market where sales come mostly from new products.
B)satisfying the changing needs of the technological research staff.
C)avoiding market saturation from products that have just been introduced to the market.
D)creating diversification and reducing risk.
E)spreading out production costs.

Question

Quizplus · Accepted Answer

By adding new product lines beyond its core business of computer software, Microsoft is creating diversification and reducing risk. This is because if one product line is not performing well, the company has other sources of revenue to rely on, instead of relying solely on their software sales.

By Adding New Product Lines Beyond Its Core Business of Computer