Anna and Martha are owners and managers of A&M, a limited liability corporation (LLC) that provides a wide array of services: mailing, notary services, packaging and pickup for UPS and FedEx, as well as faxing and document scanning. Anna and Martha have asked you, as their consultant, to consider whether or not they might want to diversify into financial planning due to the increasing number of retirees moving into their community. How would you advise Anna and Martha to proceed?
A. Remain on course, but only if A&M encounters enhanced market opportunities and increasing sales in its principal business.
B. Remain on course, but only if your single-business company can achieve profitable growth opportunities in its present industry.
C. A&M needs to develop a multi-line strategy.
D. A&M needs to consider diversification opportunities into financial planning if you have encountered diminishing market opportunities and stagnating sales in your principal business.
E. A&M needs to develop a corporate-wide strategy.
Answer: D
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