If one of the reasons that Peach Computers entered into the electronics industry was to offset weakness in the computer industry because when the computer industry was weak the electronics industry was strong,and vice-a-versa,Peach Computers would be pursuing which economy of scope?
A) Core competencies
B) Multipoint competition
C) Tax advantages
D) Risk reduction

Question

Quizplus · Accepted Answer

Pursuing the electronics industry to offset weakness in the computer industry is an example of risk reduction, which is a form of economy of scope that involves diversifying into different products or markets to reduce overall risk. Core competencies involve leveraging a company's unique strengths to compete in multiple markets, multipoint competition involves competing with the same competitors in multiple markets, and tax advantages involve taking advantage of tax incentives across different businesses or markets.

If One of the Reasons That Peach Computers Entered into the Electronics