Which of the Following Statements Is NOT Generally True of a Diversification

question 51

Multiple Choice

Which of the following statements is NOT generally true of a diversification strategy based on the realization of economies of scope?

• A) The strategy requires the head office to evaluate each business unit as a stand-alone operation.
• B) The strategy allows a company to realize cost economies among business units.
• C) The strategy may allow a company to use shared resources more intensively, thereby realizing economies of scale.
• D) The strategy requires managers to be aware of the costs of coordination.
• E) The strategy requires close coordination among different business units.

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Definitions:

Mutator Method

Methods in object-oriented programming used to modify the state of an object, also known as setter methods.

Validate Value

The process of checking whether a given value meets certain criteria or conditions.

Instance Variable

A distinctive variable within a class, providing each instantiated object of that class with its own individual copy.

Class Constructor

A special method in object-oriented programming used to initialize a newly created object with default or provided values.