Question

(1 point) what is one reason why diversification is considered to be the riskiest type of growth strategy? because of the unknowns of obtaining new distribution channels because of the risk of losing revenue through price slashing because of unfamiliarity with overseas cultures and laws because of the need to learn about a whole new business

Explanation:

Diversification involves entering a new business. This requires learning about an entirely new industry, market, and business operations. Unlike other growth strategies (like market penetration which focuses on existing products/markets or product development which builds on existing capabilities), diversification means starting afresh in a new business realm. The other options (unfamiliarity with overseas cultures/laws - more international expansion; risk of losing revenue through price - related to competitive pricing; unknowns of new distribution - more market development) are more niche risks. The core risk of diversification is the broad - based need to learn a new business.

Answer:

because of the need to learn about a whole new business