To Test Whether a Particular Diversification Move Has Good Prospects

question 16

Multiple Choice

To test whether a particular diversification move has good prospects for creating added shareholder value,corporate strategists should use the

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

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Definitions:

Carbaminohemoglobin

Carbon dioxide bound to hemoglobin by means of a reactive amino group on the hemoglobin.

Ventilation

The process of moving air in and out of the lungs, facilitating gas exchange with the internal environment.

Gas Exchange

The biological process through which gases (e.g., oxygen, carbon dioxide) are transferred between the blood and the external environment in the lungs.

Bohr Effect

Named for Danish physiologist Christian Bohr (1855–1911). Shift of the oxygen-hemoglobin dissociation curve to the right or left because of changes in blood pH. The definition sometimes is extended to include shifts caused by changes in blood carbon dioxide levels.