The Basic Types of Operational Economies Through Which Firms Seek

question 55

Multiple Choice

The basic types of operational economies through which firms seek value from economies of scope are

• A) synergies between internal and external capital markets.
• B) the leveraging of individual tangible resources.
• C) the sharing of primary and support activities.
• D) joint ventures and outsourcing.

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Definitions:

Par Value

A nominal value assigned to shares of stock by the issuing company, which may or may not reflect the shares' market value.

Excess of Par

The difference between the issue price of a stock and its par value, representing additional paid-in capital for the company.

Authorized Stock

The maximum number of shares a corporation is legally permitted to issue, as stated in its articles of incorporation.

Corporate Charter

A legal document issued by a government that establishes a corporation as a legal entity and outlines its rights and obligations.