Economies of Scope

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.