Of Michael Porter's Three Tests of Whether a Proposed Diversification

question 67

Multiple Choice

Of Michael Porter's three tests of whether a proposed diversification will create value, the most important one is usually

• A)none. They are all equally important.
• B)the "attractiveness" test.
• C)the "cost of entry" test.
• D)The "better-off" test.

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Definitions:

Statistically Significant

A term indicating that the results of a study are unlikely to have occurred by chance alone, according to predefined criteria.

Experimental Group

The group in a scientific study that receives the treatment or intervention being tested, in contrast to the control group.

Control Group

in experiments, a group of subjects that does not receive the experimental treatment and is used as a baseline to compare the effects of that treatment.

Bimodal Distribution

A probability distribution with two different modes or peaks.