Final answer:
The portfolio strategy is a corporate-level strategy focused on minimizing risk by diversifying investments among various businesses or product lines, thereby reducing the overall risk exposure of a company.
Option 'C' is the correct.
Step-by-step explanation:
The corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines is known as a portfolio strategy. This strategy involves spreading investments across different areas to mitigate potential losses if one investment underperforms.
The idea behind this approach is that when market conditions affect one business or product line negatively, others within the portfolio may not be as affected and can potentially offset the losses. The portfolio strategy is often used by large corporations that operate in several different industries or markets, reducing the company's overall risk exposure.
For instance, a conglomerate like Berkshire Hathaway uses a portfolio strategy by owning a wide range of businesses, from insurance to fast food chains. This way, the company is not overly dependent on the success or failure of any single investment.
It's also common to see mutual funds and investment firms using a portfolio strategy when managing assets for clients. By diversifying investments across various asset classes, sectors, or geographies, they aim to provide a more stable return on investment over the long term.