Question: It becomes particularly urgent for a company to considerdiversification when there are opportunities to transfer a powerful and well-respected brandname to the products of other

It becomes particularly urgent for a company to considerdiversification when there are

opportunities to transfer a powerful and well-respected brandname to the products of other businesses and thereby increase thesales and profits of these newly entered businesses.

opportunities to lower costs by entering closely relatedbusinesses.

needs to avoid putting all of its "eggs" in one industrybasket.

diminishing market opportunities and stagnating sales in itsprincipal business.

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