DIVERSIFICATION

Diversification

Diversification

Introduction

A company adopts a strategy of diversification for its growth by means of acquiring businesses that do not form a part of the current products of a company (Lamb, et. al. 2008, p. 42). With the increasingly competitive business environment of the modern industrialized era, companies need to be even more alert regarding their financial decisions, and possible risks associated with new ventures. The significance of such decisions may be gathered from the fact that such judgments play a decisive role in the success (or possible failure) of the business.

Reduction of Risk by Diversification

Risk may be reduced by diversification by ...