The Text Claims That Economies of Scope Must Be Supported

question 16

Multiple Choice

The text claims that economies of scope must be supported by potential transaction cost savings:

• A)This is true. The firm itself must be able to save on transaction costs
• B)This is true - however, the saving could be on behalf of the firms' customers. This would work too.
• C)This is not quite true. Transaction cost savings are nice to have, but not necessary
• D)This is untrue. The text is mistaken.

---

Definitions:

Blank Endorsement

A payee’s or last endorsee’s signature on a negotiable instrument.

Payee's Signature

The signature of the individual or entity that is entitled to receive payment on a financial instrument, such as a check or promissory note.

Last Endorsee

The final person or entity to whom a negotiable instrument, such as a cheque, has been legally transferred.

Order Paper

Order Paper is a term used primarily in parliamentary contexts, detailing the day's agenda and the order in which business, such as proposed legislation, will be addressed.