A diversified company that pursues a related diversification strategy and is successful irn capturing competitively valuable strategic fit benefits along the value chains of its related businesses A. passes the value chain test and the profit expectations test for creating added long-term o B.has a clear path to achieving competitively valuable economies of scope and passes the o C.has a clear path to achieving 1+ 1 3 gains in shareholder value and achieving competitive o D.has a clear path to global market leadership in the industries where it has related businesses.C economic value for shareholders reduced-costs test for creating added long-term economic value for shareholders advantage over both undiversified competitors and competitors whose own diversification efforts don't offer equivalent strategic fit benefits o has a clear path to using economies of scope to become a global low-cost provider in each of its businesses The tests of whether a diversified company's businesses exhibit resource fit do not include o whether one or more businesses soak up a disproportionate share of a corporate parent's financial resources, make subpar or inconsistent bottom-line contributions, are too small to make a material earnings contribution, or are unduly risky (such that the financial well-being the whole company could be jeopardized in the event such businesses fall upon hard times) o whether the company has adequate financial strength to fund its different businesses, pursue growth via acquisition, and maintain a healthy credit rating o whether the corporate parent has sufficient cash on hand and cash flows from operations to fully fund the needs of its individual businesses and pay dividends to shareholders without having to borrow money or incur long-term debt o whether any of the company's business units are resource deficient either because certain needed resources and/or capabilities cannot be transferred in or shared with sister businesses or because the missing resources and/or capabilities cannot be supplied by the corporate parent. 0 whether the parent company's resources and capabilities are being stretched too thinly by the resource/capability requirements of one or more of its businesses