Answer: D.
Explanation:
Because it opens up more growth than most companies can find by staying with one product line.
Answer:
Continuous manufacturing organisation
Explanation:
Continuous production uses a production plant to manufacture a product continuously. It is also called continuous flow.
This is so called because the materials inputted in the production process is in continuous motion as it moves through the production line.
The products tend to be similar or standardised with no distinguishing features. For example cement, fertiliser, and sugar
Answer:
Cartel
Explanation:
A cartel is an association of large businesses that formally agree to work together to protect their interests. Cartels regulate supply to the markets and manipulate prices. Once formed, the cartel behaves as a single entity. Its objective is to maximize profits for each member.
The three organizations have come together and allocated themselves to regional markets. Each business will have full control of the market in its designated area. To maximize profits, cartel agree to
- set high prices
- restricts market supply
- breakdown market into territories or regions
Answer:
Option B, Increase the unsystematic risk of the portfolio, is the right answer.
Explanation:
Option B is correct because unsystematic risk refers to the risk that can be reduced drastically by diversifying the investment or portfolio. A company can reduce such risk by investing in a large range of projects or in large companies. Therefore, if the diversification decreases, as we can see in the question that the stock portfolio decreased from 50 to 10 then the unsystematic risk will increase.