Which of the Following Business Combinations Likely Exhibit Economies of Scope

question 89

Multiple Choice

Which of the following business combinations likely exhibit economies of scope?

• A) Banking services for individuals and banking services for other business
• B) Retail clothing stores and electronic (internet) clothing sales
• C) Hospitals that perform heart surgery and hospitals that perform cosmetic surgery
• D) all of the above

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Definitions:

Furtherance

An action taken to advance or promote a particular cause, objective, or interest.

Liquidation

The process of closing a business, selling its assets, and using the proceeds to settle its debts, with any remaining funds distributed to owners or shareholders.

Distributions-in-Kind

Non-cash assets paid out to investors or partners from a firm or fund.

Partnership's Assets

Items of value owned by a partnership that are used or can be used to conduct its business.