3 Views

Question : Case Study: PQR Enterprises - Funding Strategies for Diversification

PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.

Questions : Business Finance and Diversification

In the context of business finance, what does "diversification" refer to?

Option 1: Increasing shareholder dividends
    

Option 2: Expanding to international markets
   

Option 3: Reducing company workforce

   

Option 4: Expanding into new business areas


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 5th Jan, 2024

Correct Answer: Expanding into new business areas


Solution : The correct answer is (d) Expanding into new business areas

Diversification involves entering into new markets, launching new products or services, or expanding business operations into different areas or industries. The objective is to spread business risk by participating in various activities that may have different market dynamics, revenue streams, and growth potentials. This strategy helps the company balance its portfolio and reduce dependence on a single business line, potentially enhancing overall business sustainability and profitability.

Related Questions

ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
K J Somaiya Institute of Mana...
Apply
Highest CTC: INR 28.25 LPA | Average for Top 100 offers: INR 17.34 LPA | Ranked #63 in India under Management category by NIRF | 148 Recruiters
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Application Deadline: 1st Dec 2024
Bharathidasan Institute of Ma...
Apply
#94 in Management Category by NIRF | AACSB Member | AICTE Approved
JIMS- Kalkaji PGDM Admissions...
Apply
60+ Students Placed at Grant Thornton (Batch 2023-25) with a Record-Breaking Salary of INR 11.5 LPA Assured placements. Highest CTC - 35 LPA. Schol...
FORE School of Management PGD...
Apply
AICTE Approved | NBA & SAQS Accredited | Ranked #53 by NIRF 2024 | Highest CTC: 70 LPA | Avg. CTC: 16.01 LPA
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books