Which of the Following Is TRUE

question 134

Multiple Choice

Which of the following is TRUE?

• A) Conglomerates no longer exist in the U.S. business scene, but are common in emerging markets.
• B) Unrelated diversified firms seek to create value through economies of scope.
• C) The sharing of intangible resources, such as know-how, between firms is a type of operational sharing in related diversifications.
• D) Related constrained firms share more tangible resources and activities between businesses than do related linked firms.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and salaries of supervisory personnel.

Manufacturing Inventories

Manufacturing inventories consist of raw materials, work-in-process items, and finished goods that are held by a company in the course of producing its products.

Work-In-Process

Items that are in production but are not yet completed; represents one of the stages in the inventory of a manufacturing company.

Finished Goods Inventory

The completed products that are ready for sale but have not been sold yet.