Diversification is sometimes pursued by a company for the wrong reasons.Which of the following is a faulty justification for diversification?
A) Risk pooling
B) Rescuing the core business from difficulty
C) Growth for growth's sake
D) All of the above
E) None of these

Question

Quizplus · Accepted Answer

Risk pooling is a legitimate reason for diversification, but diversification solely for the purpose of rescuing the core business or pursuing growth for growth's sake is usually a faulty justification. Therefore, option D (all of the above) is the correct answer.

Diversification Is Sometimes Pursued by a Company for the Wrong