Firms with single products are better able to withstand external shocks, including changes in consumer preferences or intensive competitive activity.

Question

Quizplus · Accepted Answer

Firms with single products have a higher level of risk because their dependence on one product makes them vulnerable to external shocks, including changes in consumer preferences or intense competition. Diversification is a recommended strategy for firms to manage and reduce risk.

Firms with Single Products Are Better Able to Withstand External