Economies of Scope

question 87

Multiple Choice

Economies of scope

• A)are cost reductions that flow from cost-saving strategic fits along the value chains of related businesses in the business lineup of a multibusiness corporation.
• B)arise only from strategic fit relationships in the production portions of the value chains of sister businesses.
• C)are more associated with unrelated diversification than related diversification.
• D)are present whenever diversification satisfies the attractiveness test and the cost-of-entry test.
• E)arise mainly from strategic fit relationships in the distribution portions of the value chains of unrelated businesses.

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Definitions:

Acid PH

A measure of acidity or alkalinity, where a pH less than 7 indicates an acidic substance.

Sensory Organ

An organ of the body responsible for receiving and processing sensory information, such as the eyes, ears, skin, nose, and tongue.

Sutures

Threads or stitches used by surgeons to close cuts or wounds in the skin or tissues, promoting healing and minimizing infection risk.

Collagen

A protein that is the main component of connective tissues in the body, providing strength and elasticity.