Which of the Following Is an Example of the Economies

question 63

Multiple Choice

Which of the following is an example of the economies of scale argument for increased profits for large financial holding companies?

• A) Financial holding companies offer a wide array of services under one name.
• B) Financial holding companies need only one CEO, one Board of Directors, and one accounting system regardless of size.
• C) Financial holding companies are well diversified so risk is reduced.
• D) The profitability of financial holding companies does not rely on one particular line of business.

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Definitions:

Express Repudiation

The clear and unequivocal refusal to honor a contract or agreement, effectively declaring one's intention not to perform their contractual obligations.

Quantum Meruit

A legal principle allowing a party to recover costs for services provided when no contract exists, based on the reasonable value of the work.

Specific Performance

A legal remedy in contracts where the court orders the party who breached the contract to perform the promised action rather than simply paying damages.

Liquidated Damages

Predetermined monetary compensation agreed upon by parties in a contract as a remedy for specific breaches, especially delays.