Which of the following is an example of the economies of scale argument for increased profits for large financial holding companies?
A. Financial holding companies are well diversified so risk is reduced.
B. Financial holding companies offer a wide array of services under one name.
C. Financial holding companies need only one CEO, one Board of Directors, and one accounting system regardless of size.
D. The profitability of financial holding companies does not rely on one particular line of business.
Answer: C
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What will be an ideal response?
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