Economies of Scope Can Be Defined As

question 71

Multiple Choice

Economies of scope can be defined as:

• A) competencies that result from the skills of a company's top managers that help every business unit within a company perform at a higher level than it could if it operated as a separate or independent company.
• B) some kind of skill or competency that when shared by two or more business units allows them to operate more effectively and create more value for customers.
• C) the process of taking a distinctive competency developed by a business unit in one industry and implanting it in a business unit operating in another industry.
• D) the process of taking a distinctive competency developed by a business unit in one industry and using it to create a new business unit in a different industry.
• E) the synergies that arise when one or more of a diversified company's business units are able to lower costs or increase differentiation because they can more effectively pool, share, and utilize expensive resources or capabilities.

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Definitions:

Primary Voltage

The voltage at the input of a transformer or any primary side of an electrical system.

Primary Phase Current

The initial or main current flow in one phase of a system before splitting into secondary phases or circuits.

Resistive Load

An electrical load that consumes energy in the form of heat or light, behaving according to Ohm's law.

Turns Ratio

The ratio of the number of turns in the primary winding to the number of turns in the secondary winding of a transformer, affecting its voltage and current transformation.