Because segments in closely related industries often use similar assets and resources, a firm can frequently achieve cost savings by sharing them among businesses in different segments.

Question

Quizplus · Accepted Answer

Sharing assets and resources among closely related segments is a common way for firms to achieve cost savings. This is because these segments often have similar needs and requirements, making it possible to leverage economies of scale and scope across different parts of the business. By pooling resources and sharing assets, companies can minimize redundant costs and optimize their overall operations, resulting in improved efficiency and profitability.

Because Segments in Closely Related Industries Often Use Similar Assets