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.