Firms work to diversify.All of the following are diversification methods that firms use EXCEPT:
A)Firms seek to expand the customer base.
B)Firms seek to obtain raw materials from a number of suppliers.
C)Firms seek to isolate their product by selling to a single niche market.
D)Firms seek to produce more than one product.

Question

Quizplus · Accepted Answer

Isolating the product by selling to a single niche market is not a diversification method, as it does not involve expanding the firm's scope to multiple products or markets. The other options involve some form of diversification by either expanding the customer base, sourcing from multiple suppliers, or producing multiple products.

Firms Work to Diversify