Multiple Choice
Which of the following best illustrates diversification?
A) A company that produces many different products decides to produce fewer.
B) After selling stock, corporate management spends funds on projects with greater risks than shareholders had anticipated.
C) Instead of holding only the stocks of companies engaged in the banking business, a person decides to hold stock in a number of different companies producing different goods and services.
D) A person decides to purchase only stocks that have paid high dividends in the past.
Correct Answer:
Verified
Correct Answer:
Verified
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