The Better-Off Test for Evaluating Whether a Particular Diversification Move

question 32

Multiple Choice

The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves assessing whether the move will

• A)make the company better off because it will produce a greater number of core competencies.
• B)make the company better off by improving its balance sheet strength and credit rating.
• C)make the company better off by spreading shareholder risks across a greater number of businesses and industries.
• D)produce a synergistic outcome such that the company's different businesses perform better together than apart and the whole ends up being greater than the sum of the parts.
• E)help each business earn exactly what they were earning before coming under the same corporate umbrella.

Examine the costs and benefits associated with migration for individuals.

Understand the effects of migration on business income and domestic output in destination nations.

Evaluate the impact of different factors, such as age, family status, and language skills, on an individual's likelihood to migrate.

Examine the dynamics of wage equalization across countries due to migration.

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Definitions:

General

Relating to all members or elements in a group or category, without specifying or excluding any.

Grapevine

Informal and unofficial communication channels within an organization, where information is often shared among employees without sanction or control by management.

Controversial

Pertains to issues or subjects that provoke public disagreement or debate.

Organizationally Related

Pertaining to aspects or functions that are directly connected to the structure, culture, or operations of an organization.