The scope of a firm is traditionally defined by its
A) work force, assets, and location
B) product line, production capacity, and technological base
C) product market, geography, and vertical integration
D) technology, employee capabilities, and procedures

Question

Quizplus · Accepted Answer

The scope of a firm is usually defined by its product market (what products or services the firm offers), geography (where the firm operates), and vertical integration (how much of the production process the firm controls). While factors like workforce, assets, and technology are important, they do not necessarily determine the scope of the firm. Similarly, production capacity and employee capabilities are important, but are part of a firm's overall production process and not necessarily its scope.

The Scope of a Firm Is Traditionally Defined by Its