Porter's "Three Essential Tests" Help to Determine

question 5

Multiple Choice

Porter's "three essential tests" help to determine:

• A)The likely impact of diversification upon risk
• B)The potential for diversification to create shareholder value through boosting profitability
• C)The impact of diversification on stakeholders
• D)How the financial markets would react to a diversification.

---

Definitions:

Narcissism

A personality trait characterized by a grandiose view of one's own talents and a craving for admiration, as characterized in the diagnostic criteria for narcissistic personality disorder.

Homeostatic System

A self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Overweight Adults

Individuals aged 18 and older whose body mass index (BMI) is higher than the healthy range, often leading to increased health risks.

Proportion

A relationship between parts of a whole, often expressed as a ratio or fraction.