What do we call firms that invest in a variety of different product markets to reduce exposure to risk in single product markets?
A) investment firms
B) diversified firms
C) monopolies
D) oligopolies

Question

Quizplus · Accepted Answer

Firms that invest in a variety of different product markets to reduce exposure to risk in single product markets are called diversified firms. Diversification helps spread risk across multiple products and reduces the impact of negative events that may happen in a single market. As a result, diversified firms tend to be more stable and resilient than firms that focus on a single product market.

What Do We Call Firms That Invest in a Variety