Which of the following statements is true of diversification?
A)It involves the replacement of a defective product with a new,enhanced version.
B)It usually involves an increase in market share of present products in present markets.
C)It often leads an organization into new businesses.
D)It helps ensure that an organization replaces defective products.

Question

Quizplus · Accepted Answer

Diversification involves entering into new businesses or markets, which means that statement C is correct. Statement A is incorrect because it refers to product improvement, not diversification. Statement B is incorrect because it refers to market penetration, not diversification. Statement D is incorrect because it refers to product replacement, not diversification.

Which of the Following Statements Is True of Diversification