Merger's and Acquisition's Quiz Question

Answer this question taken directly from our M&A Professional Certificate course!

Which of the following is an example of economies of scope?

A. Declining average fixed costs due to increasing levels of capacity utilization.
B. A single computer center supports multiple business units.
C. Amortization of capitalized software.
D. The divestiture of a product line.
E. Shifting production from an underutilized facility to another to achieve a higher overall operating rate and shutting down the first facility.

Reveal Answer

A. Incorrect.Declining average fixed costs due to increasing levels of capacity utilization.
B. Correct. A single computer center supports multiple business units.
C. Incorrect.Amortization of capitalized software.
D. Incorrect.The divestiture of a product line.
E. Incorrect. Shifting production from an underutilized facility to another to achieve a higher overall operating rate and shutting down the first facility.

What is the M&A Professional Certificate?

The M&A Professional Certificate is a comprehensive analysis of the major facets of the Mergers & Acquisitions industry and the skills engaged in executing all areas of transactions from pre to post-merger integration.