Question $2$

$5$ pts

Some companies, like Six Flags, decide to never diversify. Which of the following is a potential downside $($negative$)$ to staying as a single business?

The company's managers are able to identify industry trends quickly because of historical knowledge.

The company is giving up the opportunity to expand into new industries with greater growth potential or a more favorable and more profitable industry.

The company's managers develop a deep understanding of the market, its consumers and competitors.

It allows the company to focus intently on one market and its customers.