CLEP Marketing

Answer: A - Diversification from a single product to a line of products carries a number of potential benefits for a company except slow market penetration. Diversification is a strategy that allows companies to increase their growth in sales volume by offering new products or lines of products that customers will purchase. Additionally, this strategy provides direct competition and a potential for improving the market share of the company. Finally, diversification leads to overall reduced costs for a company by spreading fixed costs, such as shipping and promotions, across lines.