Which of the following statements regarding diversification analysis is MOST ACCURATE?
A)Companies should only use diversification analysis if they are well-established;new companies that use this process run the risk of trying to do too much too soon.
B)For any product,there is both a current and a new market;for any market,there is both a current and a new product.
C)Most companies discover that there is at least one product that is targeted to the wrong market.
D)Diversification analysis is only effective for consumer products.
E)Diversification analysis is used to forecast and calculate industry sales for new products.

Question

Quizplus · Accepted Answer

This statement correctly identifies the four possible combinations of current and new products and markets in diversification analysis, and is therefore the most accurate statement. The other choices either express limitations on the use of the analysis (A, D), make overly broad or incorrect claims (C), or confuse diversification analysis with a different forecasting method (E).

Which of the Following Statements Regarding Diversification Analysis Is MOST