Reading Comprehension: Inference Questions
What can be inferred from the passage about product diversification?
Great!
[[snippet]]According to the passage, a company can either diversify or develop a product. Since diversification was not a plausible solution, the company altered the product (development). This means that diversification does not involve change in the product.
Incorrect.
[[snippet]]While this answer choice reflects the dictionary definition of diversification, there is no information in the passage to support this statement or even to imply it. Remember to stick to what information is given in the passage rather than your own general knowledge!
Incorrect.
[[snippet]]We know that diversification is riskier than product development, but this does not necessarily imply that it requires a greater financial investment.
Incorrect.
[[snippet]]There is nothing in the passage that implies which of the two is more prone to failure. At any rate, the passage explicitly states that diversification is riskier than product development, which may indicate it is more prone to failure.
Incorrect.
[[snippet]]We know that diversification is riskier than product development, but this does not necessarily imply that it can provide greater benefits in the long run.
