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

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
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
UPES MBA Admissions 2025
Apply
Ranked #41 amongst institutions in Management by NIRF | Accredited Grade 'A' by NAAC | 100% Placement
JIMS Rohini PGDM Admissions 2025
Apply
Succeeder Round Applications Deadline - 24th Novermber 2024 | Highest CTC 24 LPA | Average CTC 8.30 LPA | Median CTC 8.80 LPA
Parul University BBA Admissio...
Apply
India's youngest NAAC A++ accredited University | NIRF rank band 151-200 | 2200 Recruiters | 45.98 Lakhs Highest Package
BML Munjal University MBA Adm...
Apply
#83 NIRF Ranking 2022 | Highest CTC - 14.71 LPA | 10% Tution Fee Waiver | Scholarships upto 100% | Application Deadline: 29th Nov’24
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