Two concepts that are critical in evaluating opportunities for diversification and value creation are revenue-enhancement opportunities and ________.
A) synergy
B) economic logic
C) vertical integration
D) economies of scope

Question

Quizplus · Accepted Answer

Revenue-enhancement opportunities refer to increasing sales or finding new sources of revenue, while economies of scope refer to the cost savings and efficiencies that come from combining different businesses or products. Both are important in evaluating opportunities for diversification and value creation, but the question specifically asks for the concept that is not revenue-enhancement opportunities, so the answer is economies of scope. Synergy and vertical integration are also important concepts in this context, but they are not the best choice based on the question prompt. Economic logic is not a commonly used term in this context, so it is not the best choice either.

Two Concepts That Are Critical in Evaluating Opportunities for Diversification