Firms often seek to reduce risk by operating in a single industry.

Name: Firms often seek to reduce risk by operating in a single industry.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Firms often seek to reduce risk by diversifying their operations across multiple industries. Operating in a single industry can increase risk if that industry experiences a downturn or market disruption. Diversification allows firms to spread their risk and potentially offset losses in one industry with gains in another.

Firms Often Seek to Reduce Risk by Operating in a Single