You have been hired as a consultant by Mary Dillon, CEO of Ulta Beauty, a $$5\mathrm{.}9$ billion company that is the largest U$.$S$.$ retailer of cosmetics$.$ CEO Dillon has asked you to consider several related diversification options for Ulta based on the potential for good resource fits. You would advise CEO Dillon that a company pursuing related diversification exhibits resource fit when

Multiple Choice

the resource requirements of each new line of business for Ulta could be synergistic with the company's available resources.

each new line of business for Ulta would add to a company's overall resource strengths and have matching resource requirements and$/$or could do so when Uita has adequate corporate resources to support its business needs and add sufficient value.

each new line of business for Ulta could become a cash cow.

each new line of business for Ulta could generate large internal cash flows over and above what is needed to build and maintain the business.

each new line of business for Ulta could become sufficiently profitable to generate an attractive return on invested capital.