Shared activities can increase the revenues in diversified firms' businesses, and failure to exploit shared activities across businesses can lead to out-of-control costs.

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Shared activities such as marketing, research and development, and distribution can lead to cost savings and increased revenue in diversified firms' businesses. Failure to exploit these shared activities can result in duplicated efforts, inefficiencies, and increased costs. Therefore, it is crucial for diversified firms to leverage their shared activities to achieve economies of scale and scope.

Shared Activities Can Increase the Revenues in Diversified Firms' Businesses