Increased horizontal scope is attractive to firms because it offers opportunities by reducing costs through exploiting possible economies of scope and by ________.
A) increasing the customer base
B) decreasing production costs
C) decreasing competition between similar business units
D) increasing revenues through synergies

Question

Quizplus · Accepted Answer

Increased horizontal scope can lead to synergies, which can result in increased revenues. Synergies may take the form of shared resources, such as marketing or distribution channels, or shared knowledge and expertise, which can lead to new product development or improved operations.

Increased Horizontal Scope Is Attractive to Firms Because It Offers