With a Strategy of Unrelated Diversification,an Acquisition Is Deemed to Have

question 38

Multiple Choice

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

• A) can achieve financial returns.
• B) has the opportunity to generate positive cash flow.
• C) can pass the industry attractiveness test and the cost-of-entry test,and if it has good prospects for profit growth.
• D) can generate growth in revenue.
• E) can add economic value for managers.

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