Question

An office management firm has developed a system for efficiently organizing small medical and dental practices both through proprietary software and through unique training programs for staff. It has recently acquired a firm specializing in providing management services for veterinary practices. The office management firm is hoping to: a. achieve financial economies through an unrelated acquisition. b. implement vertical integration. c. achieve economies of scope. d. acquire specialized talent from the veterinary management company.

Answer 1

Answer: C. Achieve economies of Scope.

Explanation: Developing efficient methods of reducing manufacturing and marginal cost through methods of engaging in the production of similar goods or rendering similar services rather than producing or rendering these services separately. In the scenario above, the management firm aims to efficiently organize it's services into a more compact space through a robust software program and developing skill set of it's staffs. These will enable them provide various related medical practices at a time rather than having different people or software applications to handle them. These move offers a cost effective solution to a firms spending, increases efficiency and drives revenue.

Answer 2

The answer is option C. achieve economies of scope.

Step-by-step explanation:

An Economies of scope is a proportionate saving gained by producing two or more distinct goods, when the cost of doing so is less than that of producing each separately.

Based on the scenario portrayed in the question, the office management firm is hoping to achieve economies of scope.