By adding new product lines beyond its core business of computer software,like the 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) diversifying and reducing risk.
E) all of these.

Question

Quizplus · Accepted Answer

By diversifying its product portfolio and venturing into new markets like gaming, Microsoft is spreading its risks across multiple products and markets. This reduces its dependence on its core business of computer software and makes it less vulnerable in case of a downturn in any one particular market.

By Adding New Product Lines Beyond Its Core Business of Computer