25. Why is diversification a recommended investment strategy?
A. Investing in a diversified portfolio guarantees that you won't lose money with your
investments.
B. If you tell your fund manager to use diversification, they'll charge you lower fees.
C. Diversifying your portfolio helps reduce risk. (Less likely to lose money)
D. If you diversify your portfolio, you are guaranteed to make a high return.

Solvency and profitability are two distinct yet interdependent aspects of a company’s financial health. a solvent company has assets that exceed its liabilities sufficiently to provide for reinvestment in the company’s growth. the standard for profitability requires that income derived from the company’s business activities exceeds the company’s expenses. while a company can be solvent and not profitable, it cannot be profitable without solvency.