Substitutes for Exploiting Economies of Scope in Diversification Include

question 81

Multiple Choice

Substitutes for exploiting economies of scope in diversification include

• A) growing and developing independent businesses within a diversified firm and vertical integration.
• B) vertical integration and strategic alliances.
• C) growing and developing independent businesses within a diversified firm and strategic alliances.
• D) strategic alliances and multipoint competition.

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Definitions:

Processing Cost

The expenses associated with the operation needed to convert raw materials into finished products.

Disposal Cost

Expenses associated with the process of disposing of waste, obsolete inventory, or equipment, including transportation, recycling, or landfill fees.

Revenue Retrieval

The process of getting back revenue that has been lost or unaccounted for through various recovery efforts or strategies.

Resale Revenue

Income generated from selling goods or services that were previously purchased.