To create long$-$term economic value for shareholders by diversifying into one or more new businesses, a company must

diversify into industries that have low business risk, are growing rapidly, and are a good fit with the company's present customer base.

choose to enter only businesses that pass the profit test, the customer fit test, and the stock price impact test. diversify into businesses that pass the industry competitiveness test, the competitive fit test, and the profit test.

choose to enter only businesses that pass the business risk avoidance test, the strength$-$of$-$competition test, and the profitability test.

diversify into businesses that pass the industry attractiveness test, the cost$-$of$-$entry test, and the better$-$off test.