Which statement regarding diversification analysis is most accurate?

Multiple Choice

Companies should only use diversification analysis if they are well$-$established; new companies that use this process run the risk of trying to do too much too soon.

For any product, there is both a current and a new market; for any market, there is both a current and a new product.

Most companies discover that there is at least one product that is targeted to the wrong market.

Diversification analysis is only effective for consumer products.

Diversification analysis is used to forecast and calculate industry sales for new products.