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.

---

Definitions:

Exception Object

An instance of or an object that represents an error or an exceptional event that disrupts the normal flow of a program's execution.

Throw Exception

A statement used in many programming languages to signal the occurrence of an unexpected or error condition.

Checked Exception

A type of exception in Java that must be either caught or declared in the method's throws clause.

Compiler

A software tool that translates source code written in a programming language into machine code, executable by a computer's CPU.