With a strategy of unrelated diversification,an acquisition is deemed to have potential if it:

Question

Quizplus · Accepted Answer

With a strategy of unrelated diversification, potential acquisitions should pass the industry attractiveness test and the cost-of-entry test, as well as have good prospects for profit growth. Financial returns, positive cash flow, revenue growth, and economic value for managers may be important factors, but they are not the only criteria for determining potential acquisitions in this strategy.

With a Strategy of Unrelated Diversification,an Acquisition Is Deemed to Have