When the Value Chains of Two Separate Products or Services

question 90

Multiple Choice

When the value chains of two separate products or services share activities,such as the same marketing channels,in order to reduce costs,this is an example of

• A) economies of scope.
• B) economies of scale.
• C) economies of integration.
• D) economies of learning.
• E) outsourcing.

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Definitions:

Dividend Yield

The ratio of a company's annual dividend payments to its share price, reflecting the earning potential from dividends for investors.

Receivable Turnover

A financial metric that measures the efficiency of a company in extending credit and collecting debts, calculated as sales divided by the average accounts receivable.

Inventory Turnover

An indicator of the number of times a firm's inventory turnover occurs during a certain period, demonstrating the effectiveness of its inventory control practices.

Operating Cycle

The duration between the initial investment in production and the generation of cash from the sale of the goods produced.