Which of the Following Is an Example of the Economies

question 63

Multiple Choice

Which of the following is an example of the economies of scale argument for increased profits for large financial holding companies?

• A) Financial holding companies offer a wide array of services under one name.
• B) Financial holding companies need only one CEO, one Board of Directors, and one accounting system regardless of size.
• C) Financial holding companies are well diversified so risk is reduced.
• D) The profitability of financial holding companies does not rely on one particular line of business.

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Definitions:

Industry

The collective organizations and activities involved in the production, processing, and distribution of goods and services within a particular sector.

Skill-Based Pay Plans

Compensation systems that reward employees for acquiring and applying specific skills or knowledge.

Job Assignment

The process of allocating specific tasks, duties, and responsibilities to employees as part of their roles within an organization.

Integrated Model

A cohesive framework that combines multiple theories or components into a single, comprehensive explanation or approach.