Diversifying the Business

Description

Tom is a food producer who wants to expand his business by adding a new line. His new line is based on a recipe he stole from the present top producer of that particular product. This new product line fits into his family of products. He could diversify his three existing lines that are serving him well with little capital outlay. To add this new line, he would have to develop a new production line which means he has to increase his debt load.