Which of the following questions is NOT part of the three-pronged test to identify conditions under which diversification can create shareholder value?
A) What is the cost of entry?
B) How will the business units of the firm be aligned?
C) How attractive is the industry?
D) Will the business be better off?

Question

Quizplus · Accepted Answer

The three-pronged test for diversification includes evaluating the attractiveness of the industry (C), the cost of entry (A), and whether the business will be better off (D). The alignment of business units (B) is not part of this specific test for identifying conditions under which diversification can create shareholder value.

Which of the Following Questions Is NOT Part of the Three-Pronged