With a Strategy of Unrelated Diversification, an Acquisition Is Deemed

question 59

Multiple Choice

With a strategy of unrelated diversification, an acquisition is deemed to have potential if it

• A)can achieve at least existing profit margins into the near future.
• B)has the opportunity to generate positive buzz in the industry, even if it may not be able to contribute to the parent firm's bottom line.
• C)can pass the industry attractiveness test and the cost of entry test, and if it has good prospects for profit growth.
• D)can pass at least the industry attractiveness test if not the cost of entry test.
• E)can add economic value for managers.