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:

Homesteading

A process where settlers could acquire land at little or no cost in exchange for cultivating it, particularly promoted by the Homestead Act of 1862 in the USA.

Dodge City

Dodge City is a historic town located in Ford County, Kansas, known for its roots in the American Old West as a frontier cowboy town, famous for its lawmen and gunfights.

Annual Rainfalls

The total amount of precipitation, measured in inches or millimeters, that falls in a given location over the course of a year.

American West

The region of the United States located west of the Mississippi River, characterized by its history of frontier development, indigenous displacement, and cultural mythologizing.