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.

---

Definitions:

Global Negotiator

A negotiator who operates on an international scale, dealing with cross-cultural and global business negotiations.

Challenge

A call to engage in a contest, competition or a task requiring special effort or endurance as a test of one’s ability or resources.

Main

The most important or central part of something.

Culture-In-Context

Understanding cultural elements and their influences within specific situations or environments.