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To Test Whether a Particular Diversification Move Has Good Prospects

Question 84

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, the industry attractiveness test, and the capital gains test.
B) better-off test, the competitive advantage test, the profit expectations test, and the shareholder value test.
C) barrier-to-entry test, the competitive advantage test, the growth test, and the stock price effect test.
D) strategic fit test, the industry attractiveness test, the growth test, the dividend effect test, and the capital gains test.
E) attractiveness test, the cost of entry test, and the better-off test.

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