Although Economies of Scope Refer to Spreading Cost, This Is

question 27

Multiple Choice

Although economies of scope refer to spreading cost, this is NOT the case for brand extension

• A)because a brand doesn't cost anything - it's an asset.
• B)because although the brand costs money, this does not appear in the accounts.
• C)because the brand is to do with the marketing department, not production cost.
• D)it is still true for brand extension, since creating and maintaining a brand does cost a lot e.g., in advertising.

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Definitions:

Inter-Rater Reliability

The degree of agreement among different individuals assessing or scoring the same event, demonstrating consistency in measurements.

Multinational Corporation

A corporation that has its facilities and other assets in at least one country other than its home country, and operates on a global scale.

Transnational Corporation

A firm that attempts to balance local responsiveness and global scale via a network of specialized operating units.

International Corporation

A large company that operates in multiple countries, managing production or delivering services across national boundaries.