In order for corporate diversification to be economically viable there must either be some valuable economy of scope among the multiple businesses in which a firm is operating or it must be less costly for managers in a firm to realize these economies of scope than for an outside equity holder on his or her own.
Correct Answer:
Verified
Q2: When a firm operates in multiple industries
Q3: A firm that diversifies by exploiting its
Q4: Firms that may appear to be unrelated
Q8: Core competencies are complex sets of resources
Q9: Shared activities can increase the revenues in
Q10: Shared activities that can provide the basis
Q13: A firm implements a corporate diversification strategy
Q16: Operational economies of scope include shared activities
Q18: Economies of scope exist in a firm
Q20: Over the last decade, more and more
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