The better$-$off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves

Question $17$ options:

A$)$

assessing whether the diversification move will make the company better off by spreading shareholder risks across a greater number of businesses and industries.

B$)$

evaluating whether the diversification move will produce a $1+1=3$ outcome such that the company's different businesses perform better together than apart and the whole ends up being greater than the sum of the parts.

C$)$

offers the prospect of gaining an immediate competitive advantage in the new industry and thus helps ensure that the diversification move will pass the competitive advantage test for building shareholder value.

D$)$

assessing whether the diversification move will make the company better off by improving its balance sheet strength and credit rating.

E$)$

assessing whether the diversification move will make the company better off because it will produce a greater number of core competencies.