The only two economies of scope that do not have the potential for generating positive returns for a firm's equity holders are diversification in order to maximize the size of a firm and diversification to reduce risk.

Question

Quizplus · Accepted Answer

Diversification to maximize firm size and reduce risk may not always lead to positive returns for equity holders, as they can lead to inefficiencies and may not align with shareholder value maximization.

The Only Two Economies of Scope That Do Not Have