The better$-$off test for evaluating whether a particular move to diversify into a new business is likely to produce added long$-$term economic value for shareholders involves assessing whether

the company's balance sheet strength and credit rating will be better$-$off after the diversification move than before.

opportunities in the new business offer potential for growing the company's revenues and profits.

the diversitfcation move will cause the company to be better$-$off because of having greater brand name recognition and higher degrees of customer loyalty.

the diversification move has attractive potential for the business being acquired and the acquiring company to perform better together as part of the same corporation $($thus creating a $1+1=3$ effect known as synergy$)$ than they would have performed if the acquiring company and the business to be acquired operated separately.

the diversification move will cause the company to be better$-$off because of added enhancements to its collection of resources and competitive capabilities.