To Test Whether a Particular Diversification Move Has Good Prospects

question 103

Multiple Choice

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

• 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.