Answer:
Following are the solution to this question:
Explanation:
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Private owners' primary aim in capitalism is money creation.
A system of economics referred to as "capitalism" is one that promotes private ownership of the tools of creation, distribution, and exchange in order to generate profit. In this system, the market decides the production and pricing of the goods and services, hence supply and demand dynamics are very important.
An economic system known as capitalism is one in which private individuals own and manage the trade and industries of the economy in order to profit.
What is Capitalism:
Capitalism, which includes both the working class and the capitalist class, supports class differentiation, there is a significant gap between the rich and the poor. On the other hand, communism is opposed to class inequalities in society since it supports a society in which there is no distinction among the rich and the poor.
In a capitalist society, everyone is responsible for generating their own wealth. Contrarily, in communism, wealth is dispersed in accordance with needs and capacity. While there is intense competition between businesses in capitalism, this is not the case in communism, because the government controls the market. While capitalism exists in western nations, socialism is more prevalent in eastern nations.
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Answer:
<u>A) conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).</u>
<u>Explanation</u>:
Remember, the key word here is about whether diversification into a particular industry would likely increase shareholders value.
Thus, any company wanting to test this out would consider whether conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).
This option is better because improved profits implies better shareholder value.
