Which of the Following Tests Considers the Potential for Synergy

question 24

Multiple Choice

Which of the following tests considers the potential for synergy as advantage emerges for a new business because of its association with another company?

• A) The just-like-me test
• B) The attractiveness test
• C) The cost-of-entry test
• D) The better-off test

---

Definitions:

Extraction Cost

The expenses associated with the removal of resources or raw materials from the earth, such as mining, drilling, or quarrying.

Quantity of Gold Bars

The quantity of gold bars represents the physical amount of gold, measured in bars, that an entity possesses or trades.

User Cost

The cost of using a good or service, including the cost of foregone opportunities.

Nonrenewable Resource

A natural resource that cannot be replenished at a rate to match its consumption, such as fossil fuels or minerals.