To Test Whether a Particular Diversification Move Has Good Prospects

question 60

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

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Definitions:

Simplify

In mathematics, to reduce an expression or equation to its simplest form or most understandable version.

Evaluate

The act of determining the worth of a given expression.

Simplify

The process of reducing an expression to its most basic form or smallest possible components.

Evaluate

Finding out the numerical value associated with an expression.