A Firm with Strong Capabilities in Managing Synergy Is Able

question 44

Multiple Choice

A firm with strong capabilities in managing synergy is able to create economies of scope using ____.

• A) high operational relatedness and low corporate relatedness
• B) low operational relatedness and high corporate relatedness.
• C) high operational relatedness and high corporate relatedness
• D) low operational relatedness and high corporate relatedness

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Definitions:

Factor

A financial company that purchases receivables from businesses, providing them with immediate cash.

Impairment

Impairment is a reduction in the recoverable value of an asset below its carrying value, leading to an expense in the income statement.

Receivable

An amount of money owed to a company by its customers or clients for goods or services provided on credit.

IFRS

The International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of financial statements globally.