Holding companies are viable options for financial groups if the transition to a holding company would be ________ and exhibit ________.

Question

Quizplus · Accepted Answer

Holding companies are viable options for financial groups if the transition to a holding company would be tax-neutral and exhibit economies of scope. Economies of scope exist when a firm can produce a wider range of products or services with the same or lower costs than it could if it produced each product or service separately.

Holding Companies Are Viable Options for Financial Groups If the Transition