In: Operations Management
Companies diversify for a number of general reasons. Which of the following is not one of those reasons? seeking growth to gain market power to reduce financial risk to increase the number of shareholders
seeking growth |
|
to gain market power |
|
to reduce financial risk |
|
to increase the number of shareholders |
To increase the number of shareholders
Organization generally diversify in order to sustain and grow in a field of business as the level of competition both in terms of quality and quantity is huge. The organization may also seek growth and expect market power but increasing the number of shareholders is not an objective of diversification accordingly.