Which of the Following Statements Regarding Diversification Analysis Is Most

Multiple Choice

Which of the following statements regarding diversification analysis is most accurate?

A) Diversification analysis should only be used by companies that 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 product and for any product there is both a current market and a new market.
C) Most companies will discover, through diversification analysis, that there is at least one product that is completely targeted to the wrong market.
D) Diversification analysis is only effective for consumer products.
E) Diversification analysis is used to forecast and calculate industry figures for potential new products.