Post Utme Futo 2023 Commerce Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Futo Commerce examination.

Post Utme Futo 2023 Commerce Objective / Multiple Choice
Question 36 POST_UTME_FUTO • 2023 • COMMERCE • objective

A company specializes in producing and selling a unique brand of chocolates. The production process involves mixing cocoa beans with sugar, milk, and other ingredients. The company uses a just-in-time inventory system to manage its raw materials. However, due to a sudden increase in demand, the company's suppliers are unable to meet the required quantity of cocoa beans. The company's management decides to diversify its product line by introducing a new product, a coffee-flavored confectionery. The new product requires a different set of ingredients and manufacturing process. What is the primary advantage of this diversification strategy?

Answer Options

Correct Answer A. Reduced dependence on a single supplier
B. Increased market share
C. Improved product quality
D. Enhanced brand reputation
Correct Answer
A
Correct Option:
Reduced dependence on a single supplier

About This Question

This is Post Utme Futo 2023 Commerce Question 36. It is one of the objective questions from the 2023 Post Utme Futo Commerce examination.

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