The Maximum Opportunities to Exploit Potential Economies of Scope and Revenue

question 20

Multiple Choice

The maximum opportunities to exploit potential economies of scope and revenue enhancement synergies lie at the intersection of the two dimensions of fit among parent-subsidiary ________ and ________.

• A) products; services
• B) similarities; dissimilarities
• C) managers; employees
• D) resources; strategies

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Definitions:

Nominal Consideration

A very small or token amount paid in a transaction to make it legally valid, even though the actual value of the transaction may be much larger.

Freedom of Contract

The freedom to enter into and enforce contracts without unnecessary interference by the state.

Adequacy

The state of being sufficient or appropriate in quantity, quality, or degree.

Stay Agreement

A legal document that temporarily suspends proceedings or actions as agreed upon by the involved parties.