Managers may decide to invest ____ in products that are not associated with the firm's current lines of business to increase the firm's level of diversification and decrease their employment risk.

Question

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Free cash flows are funds available for investment after all necessary expenditures have been made. Investing in unrelated products can be considered a use of free cash flows to increase the firm's level of diversification. This strategy can help decrease employment risk by reducing the firm's dependence on a single line of business. Substantial or marginal profits and frozen assets are not directly related to this strategy.

Managers May Decide to Invest ____ in Products That Are