To Test Whether a Particular Diversification Move Has Good Prospects

question 37

Multiple Choice

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

• A) the profit test,the competitive strength test,the industry attractiveness test,and the capital gains test.
• B) the better-off test,the competitive advantage test,the profit expectations test,and the shareholder value test.
• C) the barrier-to-entry test,the competitive advantage test,the growth test,and the stock price effect test.
• D) the strategic fit test,the industry attractiveness test,the growth test,the dividend effect test,and the capital gains test.
• E) the attractiveness test,the cost-of-entry test,and the better-off test.

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Definitions:

Treatment Effectiveness

Treatment effectiveness refers to the extent to which a medical or psychological intervention successfully achieves the desired health outcomes in the real world.

Psychotropic Medications

Drugs that affect mental processes and that can be used to treat psychological disorders.

Transcranial Magnetic Stimulation

A noninvasive procedure using magnetic fields to stimulate nerve cells in the brain, often used in treating depression.

Mood Stabilizers

Medications used to treat mood disorders, such as bipolar disorder, by regulating mood swings and reducing manic and depressive episodes.