If a Diversified Firm Had Three Businesses and These Companies

question 28

Multiple Choice

If a diversified firm had three businesses and these companies shared a common marketing and service operation, as well as common technology and development, this would be an example of which type of economy of scope?

• A) core competencies
• B) shared activities
• C) risk reduction
• D) multipoint competition

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Definitions:

Electric Utilities

Companies that generate, transmit, and distribute electricity to consumers and businesses.

Aircraft Manufacturing

The industry focused on the production and assembly of aircraft and their components, including commercial, military, and private planes.

Public Regulation

Public regulation involves government intervention in the market to correct market failures, protect consumers, and achieve social goals.

Industrial Regulation

Governmental policies and laws aimed at controlling or guiding business practices in specific sectors to ensure fair practices, safety, and competition.