Porter's Three Tests Help to Determine

question 26

Multiple Choice

Porter's three tests help to determine:

• A)What the level of risk is for a potential diversification
• B)Whether diversification would create shareholders' value
• C)If top managers will benefit from diversification
• D)How the financial markets would react to a diversification

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Definitions:

Consumer Sales Promotion

A promotion that includes free samples, coupons, contests, and demonstrations to consumers.

Cooperative Advertising

A cost-sharing arrangement between manufacturers and retailers to cover the cost of advertising the manufacturer's products.

National Advertising

Advertising campaigns that are spread across a country, targeting a national audience, often used by brands to reach a large consumer base.

Point-Of-Purchase Displays

Promotional or marketing materials placed at the point of purchase to attract customers and encourage immediate buying.