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.

---

Definitions:

Jean Piaget

A Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development.

Lev Vygotsky

A psychologist from Russia recognized for his contributions to understanding cognitive growth, especially his theory on the Zone of Proximal Development.

Lawrence Kohlberg

A psychologist known for his theory of moral development, which suggests that individuals progress through stages of moral reasoning as they grow.

Zygotes

The initial cell formed when a new organism is produced by the combination of male and female reproductive cells.