Hawthorne Corporation, a leading watch manufacturer based in California, had operations across various countries.When a massive flood broke in California and its surrounding areas, many people lost their lives in the flood.However, this event did not affect Hawthorne Corporation substantially, as it functioned across many nations.This implies that the organization had diversified its _____ by not being completely dependent on its operations in California.

Question

Quizplus · Accepted Answer

Business risk refers to the risk of loss due to factors that are specific to a particular industry or business. The fact that Hawthorne Corporation had diversified its operations across various countries helped it to reduce its business risk, as it was not completely dependent on its operations in California. The other options, such as political risk, cultural risk, default risk, and lifetime risk, do not specifically pertain to the situation described in the passage.

Hawthorne Corporation, a Leading Watch Manufacturer Based in California, Had