A company that desired to spread its risk by offering a breadth of products and to a variety of markets is engaged in _____________. This approach would reduce unsystematic risk as when one industry was doing poorly, they still could profit from customers in other industries.
A) diversification
B) product development
C) market development
D) market penetration

Question

Quizplus · Accepted Answer

Diversification involves spreading investments across various industries or product lines to reduce risk. If one sector performs poorly, others may compensate, reducing the overall impact on the company.

A Company That Desired to Spread Its Risk by Offering