A Firm Can Pass the Better-Off Test in Determining the Viability

question 3

Multiple Choice

 A firm can pass the better-off test in determining the viability of diversification when

• A) the price of the acquired firm is low enough to yield a potential return on investment.
• B) the total competitive advantage is above and beyond what the two businesses could achieve independently.
• C) it acquires extremely high-cost industries.
• D) it spends more time on implementation processes.

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, aiming to provide an accurate description of the entire data set.

Median

The middle value in a data set, which divides the set into two equal halves, with an equal number of data points above and below it.

Mode

The value that appears most frequently in a data set. A mode can be used as a measure of central tendency, especially for categorical data.

Histogram

A type of graph that represents the distribution of numerical data by showing the number of data points that fall into various ranges or bins.