The Only Two Economies of Scope That Do Not Have

question 76

True/False

The only two economies of scope that do not have the potential for generating positive returns for a firm's equity holders are diversification in order to maximize the size of a firm and diversification to reduce risk.

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Definitions:

Ileostomy

A surgical opening created in the ileum (part of the small intestine) to divert waste out of the body through a stoma.

Iron Supplements

Nutritional products that supply additional iron to help prevent or treat anemia by increasing red blood cell production.

Fecal Occult

A diagnostic test searching for hidden (occult) blood in the stool, often an early screening tool for colorectal cancer or other gastrointestinal disorders.

Black Stool

Feces that are dark in color, typically indicating the presence of blood, often from the upper gastrointestinal tract.