What might induce an already diversified company to enter additional businesses and broaden its diversification base?

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18-08-2022
Business

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What might induce an already diversified company to enter additional businesses and broaden its diversification base?

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nikitavidya0 nikitavidya0 · Answer 1 · 2022-08-26T10:41:43+02:00

The diversified company can enter additional businesses and broaden its diversification base can be induced to the attractiveness of the industry.

What is a diversified company?

Diversified company refers to the organization indulged in various kinds of the business. For Instance, Hindustan Unilever limited is a diversified company which produces various products like soaps, toothpaste, shampoos etc.

The company which is already diversified can enter into extra businesses in order to expand the business in order to earn more revenue, or the company is attracted towards the specific Industry.

Therefore, it can be concluded that The attractiveness of the sector might inspire the diversified corporation to enter more companies and widen its diversification base.

Learn more about diversified company here:

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