Question: 1 . What is diversification? Give some examples. 2. Does this impact the financial management of an organization? If so, how? If not, why not?

1. What is diversification? Give some examples.

2. Does this impact the financial management of an organization? If so, how? If not, why not?

3. Do organizations embrace diversification as a guideline? If so, how? If not, why not?

4. What is the relationship between diversification and the risk/return tradeoff for managerial decision making?

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