Final answer:
According to the portfolio theory, for a corporation to avoid failing, it should 1) become diversified by investing in a wide range of industries and markets to mitigate risks.
Step-by-step explanation:
According to the portfolio theory, the best way for a corporation to avoid failing is by becoming diversified. This means that instead of focusing on a single market or product, the corporation should invest in a wide range of industries and markets.
Diversification helps to mitigate risks associated with a single industry or market. If one sector experiences a decline, the corporation will still have other investments that may perform well and help offset any losses.
By diversifying, a corporation can spread its risk and increase its chances of long-term success.