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Question
Which of the following economies of scope do not have the potential for generating positive returns for a firm's equity holders since the economies of scope can be realized by outside equity holders at a low cost by investing in a diversified portfolio of stock?
A) Shared activities
B) Diversification to maximize the size of a firm
C) Internal capital allocation
D) Exploiting market power
Answer
This answer is hidden. It contains 1 characters.
Related questions
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The ________ consists of broad trends in the context in which a firm operates that can have an impact on a firm's strategic choices.
A) micro-environment
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C) task environment
D) internal environment
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________ measures of competitive advantage compare a firm's level of return to its cost of capital instead of to the average level of return in the industry.
A) Economic
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A competitive advantage that lasts a very short period of time is known as a ________ competitive advantage.
A) temporary
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The difference between the perceived benefits gained by a customer who purchases a firm's products or services and the full economic costs of these products or services is known as
A) accounting value.
B) comparative value.
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When a firm is able to create more economic value than rival firms it is said to have a(n)
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Identify the conditions under which a strategic alliance can be rare and discuss the role that complementary resources can play in the rarity of strategic alliances.
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A) high.
B) low.
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