Consider the reasons why firms may wantto diversify and provide a critical assessment of the economic validity oftheir reasons for diversifying.

Why Firms Diversify?
A diversified firm is defined as a firm which operates in more than one market or
industry. Diversification is one of the most influential and attractive strategy
follow by businesses to increase profitability through greater sales volume
obtained from an introduction of new product and by opening new markets along
with widening their existing market share. Diversification can occur either at the
business unit level where it is most likely to expand into a new segment that the
business is...