$2$

Multiple Choice

$2$ points

Diversification seldom results in added long$-$term value for shareholders unless

leads to competitive advantage and increased profitability.

it offers potential $1+1=3$ or "synergy" benefits because of valuable cross$-$business relationships among the value chains of the corporation's different businesses.

this strategy is less capital intensive and usually less risky than unrelated diversification.

passes not only the industry attractiveness test but also offers the best route to $2+2=4$ benefits.

it can propel the company's business forward and help it gain ground over its market rivals.

$2$

Multiple Choice

$2$ points

Diversification seldom results in added long$-$term value for shareholders unless

leads to competitive advantage and increased profitability.

it offers potential $1+1=3$ or "synergy" benefits because of valuable cross$-$business relationships among the value chains of the corporation's different businesses.

this strategy is less capital intensive and usually less risky than unrelated diversification.

passes not only the industry attractiveness test but also offers the best route to $2+2=4$ benefits.

it can propel the company's business forward and help it gain ground over its market rivals.