INTRODUCTION TO ENTREPRENEURSHIP
ENTREPRENEURIAL PROCESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increasing startup costs to ensure high-quality products or services
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Diversifying revenue streams to avoid dependence on a single source of income
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Hiring a large team of employees to manage operations
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Pursuing low-risk investment opportunities
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Detailed explanation-1: -Diversification involves spreading your investment dollars among different types of assets to help temper market volatility. By “smoothing out” market performance, you may be more likely to maintain a long-term portfolio position, potentially improving your chances of meeting key investment goals.
Detailed explanation-2: -What It Means to Diversify Your Income. In investment, diversification is a strategy used as a way to manage risk-an investor mixes different investment types such as stocks, bonds, real estate and so on within a portfolio, limiting exposure to any single asset or risk.
Detailed explanation-3: -Product diversification is a strategy employed by a company to increase profitability and achieve higher sales volume from new products. Diversification can occur at the business level or at the corporate level.