Identify and Briefly Discuss Each of the Three Tests for Determining

question 107

Essay

Identify and briefly discuss each of the three tests for determining whether diversification into a new business is likely to build shareholder value.

---

Definitions:

Stimulus Generalization

A psychological phenomenon in which a response to a specific stimulus becomes associated with similar stimuli, leading to the same response to the similar stimuli.

Secondary Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer, often used in behavioral training and conditioning.

Primary Reinforcer

A stimulus that satisfies a basic biological need, such as food or water, and is inherently rewarding.

Negative Reinforcement

Negative reinforcement is a type of operant conditioning that occurs when a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.