The Three Tests for Judging Whether a Particular Diversification Move

question 36

Multiple Choice

The three tests for judging whether a particular diversification move can create value for shareholders are:

• A) the attractiveness test,the profitability test,and the shareholder value test.
• B) the strategic fit test,the competitive advantage test,and the return-on-investment test.
• C) the resource fit test,the profitability test,and the shareholder value test.
• D) the attractiveness test,the cost-of-entry test,and the better-off test.
• E) the shareholder value test,the cost-of-entry test,and the profitability test.

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Definitions:

Atomic Singular Statement

A statement that refers to a specific individual or instance and attributes a property to it, not susceptible to further logical decomposition.

Truth-functional

Relating to the principles of logic, refers to propositional logic where the truth value of a compound sentence is determined by the truth values of its component parts.

Compound

Compound pertains to a substance made up of two or more elements chemically combined in fixed proportions.

Quantifier

In logic and mathematics, a term that specifies the quantity or numerical scope of individuals that a proposition applies to.