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:

Home-Based Businesses

Enterprises operated from the owner's home, offering flexibility and cost savings compared to traditional brick-and-mortar locations.

Education Courses

Structured programs of study or training offered by educational institutions.

Feasibility

The measure of how achievable, practical, or viable a proposed plan or project is based on existing conditions and resources.

Idea

A thought, plan, or suggestion about what to do, often implying creativity or innovation.