Diversification merits strong consideration whenever a single-business company

Question

Quizplus · Accepted Answer

Diversification is a strategy that involves expanding a company's product line or entering new markets to reduce the risk of relying on a single product or market. Diversification is particularly attractive when a company faces diminishing market opportunities and stagnating sales in its principal business, as it helps to mitigate the risk of declining revenues and profits. Therefore, option B is the best choice, as it correctly identifies a scenario where diversification should be considered as a viable strategy.

Diversification Merits Strong Consideration Whenever a Single-Business Company