The cost-of-entry test for evaluating whether diversification into a particular industry is likely to build shareholder value involves

Select one:

a. determining whether the cost to enter the target industry will raise or lower the companys total profits.

b. determining whether the cost a company incurs to enter the target industry will raise or lower production costs.

c. considering whether a companys costs to enter the target industry are low enough to allow for good profits or so high that potential profits would be eroded.

d. determining whether a newly entered business presents opportunities to cost-efficiently transfer competitively valuable skills or technology from one business to another.

e. determining whether the cost to enter the target industry will strain the companys credit rating.