The Attractiveness Test for Evaluating Whether Diversification into a Particular

question 59

Multiple Choice

The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value involves determining whether

• A)conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).
• B)the potential diversification move will boost the company's competitive advantage in its existing business.
• C)shareholders will view the contemplated diversification move as attractive.
• D)key success factors in the target industry are attractive.
• E)there are attractive strategic fits between the value chains of the company's present businesses and the value chain of the new business it is considering entering.

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Definitions:

Join A Union

The act of becoming a member of an organization that represents the interests of workers in specific industries or professions to negotiate wages and working conditions.

Social Unionism

A form of trade unionism concerned not only with workers’ rights and conditions but also with broader societal issues such as social justice and equality.

Government Program

A structured initiative or scheme developed and funded by a government to address a particular social, economic, or environmental issue.

Union Leader

A representative elected or chosen by members of a labor union who advocates for workers' rights, negotiates labor contracts, and addresses grievances.