To Test Whether a Particular Diversification Move Has Good Prospects

question 84

Multiple Choice

To test whether a particular diversification move has good prospects for creating added shareholder value, corporate strategists should use the

• A)profit test, the competitive strength test, the industry attractiveness test, and the capital gains test.
• B)better-off test, the competitive advantage test, the profit expectations test, and the shareholder value test.
• C)barrier-to-entry test, the competitive advantage test, the growth test, and the stock price effect test.
• D)strategic fit test, the industry attractiveness test, the growth test, the dividend effect test, and the capital gains test.
• E)attractiveness test, the cost of entry test, and the better-off test.

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Definitions:

Adapt

The process or ability of changing behavior, function, or structure to become better suited to an environment or situation.

Healthy Immigrant Effect

The Healthy Immigrant Effect is an epidemiological phenomenon observed in some immigrants, who often exhibit better health outcomes upon arrival in a new country compared to native-born populations, although these advantages can diminish over time.

Culture Shock

A feeling of disorientation or discomfort that one may experience when encountering a culture or a way of life vastly different from one's own.

Decline Health

The gradual deterioration of physical and/or mental health, often associated with aging or chronic conditions.