Economies of Scope

question 22

Multiple Choice

Economies of scope

• A)are cost reductions that flow from operating in multiple related businesses.
• B)arise only from strategic fit relationships in the production portions of the value chains of sister businesses.
• C)are more associated with unrelated diversification than related diversification.
• D)are present whenever diversification satisfies the attractiveness test and the cost of entry test.
• E)arise mainly from strategic fit relationships in the distribution portions of the value chains of unrelated businesses.

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Definitions:

Developing Countries

Nations with lower levels of industrialization, lower standards of living, and lower Human Development Index ratings compared to developed countries.

Reliable Source

A credible or trustworthy origin of information or data, often used in research or decision-making.

Source of Electricity

Any process or system that produces electric power, including fossil fuels, nuclear power, and renewable sources like solar, wind, and hydroelectric power.

Human Capital

The capabilities, expertise, and insight that a person or group holds, considered in relation to their worth or expense for a company or nation.