When a company decides to own and operate several separate companies, which strategy is being employed?
A) Diversification
B) Stability
C) Retrenchment
D) Multifaceted
E) Branching

Question

Quizplus · Accepted Answer

Diversification involves a company expanding its operations by adding new product lines or entering new markets, which can be achieved through owning and operating several separate companies. This strategy can help a company spread its risk and potentially increase profitability by tapping into new revenue streams.

When a Company Decides to Own and Operate Several Separate