A Car Leasing Company That Expands Its Size by Buying

question 198

Multiple Choice

A car leasing company that expands its size by buying its competitors may run the risk of increasing production costs due to

• A) diseconomies of scale.
• B) economies of scale.
• C) diminishing returns.
• D) greater use of large-volume purchases.

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Definitions:

Management Style

The way a manager works with and oversees employees to achieve organizational goals.

Describing Practice

The act of explaining or detailing the methods and procedures within a particular area or profession.

First-Line Manager

A manager who is directly responsible for overseeing and supervising the daily activities of non-managerial employees.

Facing Upward

Refers to an attitude or strategy of focusing on higher goals, optimism, or progress.