Economies of Scope Can Be Defmed As

question 53

Multiple Choice

Economies of scope can be defmed as:

• A)competencies that result from the skills of a company's top managers that help every business unit within a company perform at a higher level than it could if it operated as a separate or independent company.
• B)some kind of skill or competency that when shared by two or more business units allows them to operate more effectively and create more value for customers.
• C)the process of taking a distinctive competency developed by a business unit in one industry and implanting it in a business unit operating in another industry.
• D)the process of taking a distinctive competency developed by a business unit in one industry and using it to create a new business unit in a different industry.
• E)the synergies that arise when one or more of a diversified company's business units are able to lower costs or increase differentiation because they can more effectively pool, share, and utilize expensive resources or capabilities.

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Definitions:

Endocrine System

A network of glands and organs that produce, store, and secrete hormones into the bloodstream to regulate the body's metabolism, growth, and development.

Hormones

Chemical messengers produced by glands in the body that regulate physiological processes and behavior.

Autonomic Nervous System

Part of the peripheral nervous system that controls involuntary body functions, such as heart rate, digestion, and respiratory rate.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information.