The Three Tests for Judging Whether a Particular Diversification Move

question 22

Multiple Choice

The three tests for judging whether a particular diversification move can create value for shareholders are the

• A)industry attractiveness test,the profitability test,and the shareholder value test.
• B)strategic fit test,the competitive advantage test,and the return on investment test.
• C)resource fit test,the profitability test,and the shareholder value test.
• D)attractiveness test,the cost-of-entry test,and the better-off test.
• E)shareholder value test,the cost-of-entry test,and the profitability test.

---

Definitions:

Underclass

Refers to a segment of the population that occupies the lowest possible position in a class hierarchy, often characterized by poverty, lack of employment, and educational opportunities.

Ostracized

Excluded, shunned, or banished from a society or group, often used as a form of social punishment.

Poverty

A condition where an individual or community lacks the financial resources to meet basic needs such as food, shelter, and healthcare.

Black Bourgeoisie

The African American middle and upper class, which emerged as a distinct social group with its own cultural, economic, and political identities.