What did Rebecca and Zac realize in 2017?

• A. The FS sector is the only viable market.
• B. The FS sector is large and expanding, but it is risky to rely on a single sector and diversification is needed.
• C. They should relocate to Manchester.
• D. They should move into tech manufacturing.

Answer: (B)

The idea being tested is that even when a market looks big and growing, relying on it alone can be risky and spreading involvement across multiple areas helps manage that risk. The financial services sector being large and expanding provides plenty of opportunity, but putting all resources into a single sector leaves Rebecca and Zac vulnerable to sector-specific shocks—regulatory changes, shifts in demand, or sudden competitive pressure. By recognizing the need for diversification, they position themselves to benefit from FS growth while reducing exposure to any one market’s downturn. The other options don’t fit because relocating or moving into a different, unrelated industry wouldn’t address the risk of concentrating too narrowly, and assuming FS is the only viable market ignores the value of spreading risk across sectors.