If a company is very diversified
A)it makes it easier to classify the company by industry.
B)it would not be necessary to provide any segmented information.
C)it can limit the usefulness of financial analysis.
D)any problems with a subsidiary would be apparent when examining the consolidated statements.

Question

Quizplus · Accepted Answer

Diversification can complicate financial analysis because it may involve multiple industries with different financial dynamics, making it harder to compare the company's performance to a single industry benchmark.

If a Company Is Very Diversified