Porter's "Three Essential Tests" Help to Determine

question 5

Multiple Choice

Porter's "three essential tests" help to determine:

• A)The likely impact of diversification upon risk
• B)The potential for diversification to create shareholder value through boosting profitability
• C)The impact of diversification on stakeholders
• D)How the financial markets would react to a diversification.

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Definitions:

Inherently Good

A belief or perspective that humans are born with an innate tendency towards goodness and moral integrity.

Avoidance-Oriented

Characterized by strategies aimed at avoiding failure or negative outcomes rather than achieving success.

Affiliation Motivation

The drive to connect with others and form social relationships; it's a fundamental human impulse to seek companionship and acceptance within a group.

Unconditional Positive Regard

Acceptance and love of someone’s whole self without conditions attached.