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The statement is true. Both shared activities and internal capital allocation are examples of economies of scope that have the potential for generating positive returns for a firm's equity holders
Economies of scope exist in a firm when the worth of the items or administrations it sells increment as an element of the quantity of organizations in which the firm works. Shared exercises can expand the incomes in broadened firms' organizations, and inability to take advantage of shared exercises across organizations can prompt crazy expenses.
Inside capital designation is an illustration of a less expensive to-copy economies of scope .
Research throughout the years has shown definitively that the essential determinant of the pay of top directors in a firm isn't the economic presentation of the firm yet the size of the firm, generally estimated in deals.
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