$12.$ Diversification ought to be considered whenA$)$ a company's profits are being squeezed and it needs to increase its net profit margins and return on investment.B$)$ a company lacks sustainable competitive advantage in its present business.C$)$a company begins to encounter diminishing growth prospects in its mainstay business. a company has run out of ways to achieve a distinctive competence in its present business.E$)$a company is under the gun to create a more attractive and cost$-$efficient value chain$\mathrm{.}13.$ To test whether a particular diversification move has good prospects for creating added shareholder value, corporate strategists should useA$)$ the profit test, the competitive strength test, and the industry attractiveness test.B$)$the better$-$off test, the competitive advantage test, and the profit expectations test.C$)$the barrier to entry test, the competitive advantage test, and the stock price effect test.