A ﬁrm that wants to offset the risk associated with operating in a single product line would:
A) acquire another ﬁrm that operates in the same stage of the production process.
B) undertake a diversiﬁcation growth strategy.
C) increase the number of stages in its value chain.
D) merge with ﬁrms that are at consecutive stages of the vertical chain.

Question

Quizplus · Accepted Answer

A diversification growth strategy involves a firm expanding into new products or market areas, which can help spread and reduce the risk associated with relying on a single product line.

A ﬁRm That Wants to Offset the Risk Associated with Operating