Which of the Following Integration Types Exploits Economies of Scope

question 18

Multiple Choice

Which of the following integration types exploits economies of scope?

• A) Vertical integration
• B) Horizontal integration
• C) Cointegration
• D) Conglomerate integration

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Definitions:

Net Income

Net Income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's actual profitability.

Net Sales

The total revenue from sales minus returns, allowances, and discounts.

Owners' Equity

The amount of the business that belongs to the owners after all debts and liabilities have been subtracted from total assets.

Investment

An investment is the allocation of resources, such as time, money, or effort, in expectation of generating an income or profit.