FINANCE

BUSINESS DIVERSIFICATION DOES IT ADD SUSTAINABLE VALUE?

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IF DIVERSIFICATION ADD SUSTAINABLE VALUE . WHY IS IT THAT TOP COMPANIES IN THE WORLD ARE NOT BUSINESS THAT ARE INTO MANY DIFFERENT SECTORS OR AREAS OF THE ECONOMY?Though individuals diversify  investment to manage risk. Such decision are wise.Business  diversifying into many areas of the economy does not encourage efficiency and specialisation.
However, business that thrive are those that diversify in related areas. 
This is true because it encourage efficiency and effectiveness.
It encourage appropriate use of resources and specialisation.

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