The most compelling reason companies should diversify can be found in situations when:

Question

Quizplus · Accepted Answer

Diversification can be a key strategy for companies to leverage their existing core competencies into other products or markets. This can help the company spread their risk and increase their revenue streams. A, C, and D may be factors to consider in diversification decisions, but they do not provide as compelling a reason as leveraging core competencies.

The Most Compelling Reason Companies Should Diversify Can Be Found