Why did Bezique diversify in 2017?

• A. To reduce costs.
• B. To enter manufacturing.
• C. Because they had no growth.
• D. Because the FS sector is large and expanding but relying on one sector is risky.

Answer: (D)

Diversification is a risk-management move: spreading activity across multiple sectors reduces exposure to problems in any one area. The financial services sector is large and expanding, which offers growth opportunities, but relying on it alone creates concentration risk—a regulatory change, sector downturn, or other shock could impact the whole business. By diversifying, Bezique lowers this risk while still having the chance to benefit from overall market growth. The idea isn’t primarily about cutting costs or moving into manufacturing, and it isn’t because there’s no growth; it’s about reducing vulnerability by broadening the portfolio across different sectors.