Question

Important reasons for a company to consider industry or region diversification include A. A desire to avoid putting all of its "eggs" in one industry or region basket, dimming growth opportunities in its present business, and opportunities to transfer its resources, expertise, and capabilities to other industries and regions. B. A need to soak up excess resources and avoid the temptation to allocate unneeded resources to the company’s various internal functional area activities. C. The benefits of giving company managers the opportunity to develop first-hand knowledge of other businesses, customers, technologies, and industry environments. D. Giving the company a broader base to pursue product innovation. E. Reducing the need to use price cuts to grow the company’s profits and return on investment in its main line of business.

Answer 1

A. A desire to avoid putting all of its "eggs" in one industry or region basket, dimming growth opportunities in its present business, and opportunities to transfer its resources, expertise, and capabilities to other industries and regions.

Step-by-step explanation:

The ability to transfer knowledge, and resources to other sectors is one of the reasons why diversification happens.