By adding new product lines beyond its core business of computer software,like the Zune MP3 player and Xbox 360 game system,Microsoft primarily benefits by
A) keeping up in a market where sales come mostly from new products.
B) satisfying the changing needs of the technological research staff.
C) avoiding market saturation from products that have just been introduced to the market.
D) creating diversification and reducing risk.
E) spreading out production costs.

Question

Quizplus · Accepted Answer

By diversifying its product line, Microsoft is reducing its risk by not relying solely on one product or service for its revenue. This allows the company to better weather shifts in the market and potential declines in sales for any one product.

By Adding New Product Lines Beyond Its Core Business of Computer