The better off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves assessing whether the move make a company better off by improving is balance sheet strength and credit rating help each business earn exactly what they were earning before coming under the same corporate umbrella c make the company better off by spreading shareholder risks across a greater number of businesses and industries make the company better off because it will produce a greater number of core competencies produce a synergistic outcome such that the companys different businesses perform better together than apart and the whole ends up being greater than E the sum of its parts