When There Are Economies of Scope Between Products,selling Off an Unprofitable

question 34

Multiple Choice

When there are economies of scope between products,selling off an unprofitable subsidiary could lead to:

• A) a major reduction in costs.
• B) only a minor reduction in costs.
• C) only a minor reduction in sales.
• D) a major reduction in sales.

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Definitions:

Trickle-Down Economics

An economic theory suggesting that benefits given to the wealthy or businesses will eventually trickle down to everyone in the form of investments and jobs.

Tax Revenues

The income that is gained by governments through taxation, which is used to fund public expenditures.

Bowers V. Hardwick

A controversial Supreme Court case in 1986 that upheld the constitutionality of a Georgia sodomy law, later overturned by Lawrence v. Texas in 2003.

Homosexual Acts

Activities of a sexual nature between individuals of the same sex.