An Example of Economies of Scale in the Provision of Financial

question 83

Multiple Choice

An example of economies of scale in the provision of financial services is

• A)investing in a diversified collection of assets.
• B)providing depositors with a variety of savings certificates.
• C)hiring more support staff so that customers don't have to wait so long for assistance.
• D)spreading the cost of writing a standardized contract over many borrowers.

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Definitions:

Compensation Manager

A professional responsible for developing and implementing an organization's compensation strategy, including salaries, benefits, and bonuses.

Multidomestic Firm

A company that operates in multiple countries, tailoring strategies, products, and operations to each local environment.

Home-Country National

An employee from the same country as the company's headquarters, working at its domestic or international offices.

Mid-Sized Firm

A business that occupies a middle ground in terms of market share or workforce, usually larger than small enterprises but smaller than large corporations.