Porter's three tests help to determine:
A)What the level of risk is for a potential diversification
B)Whether diversification would create shareholders' value
C)If top managers will benefit from diversification
D)How the financial markets would react to a diversification

Question

Quizplus · Accepted Answer

Porter's three tests help to determine whether diversification would create shareholders' value. It does not focus on the level of risk, benefits for top managers, or the reaction of financial markets.

Porter's Three Tests Help to Determine