Economies of scope are present whenever diversification satisfies the attractiveness test and the cost of entry test. are cost reductions that flow from operating in multiple related businesses. arise mainly from strategic fit relationships in the distribution portions of the value chains of unrelated businesses. are more associated with unrelated diversification than related diversification. arise only from strategic fit relationships in the production portions of the value chains of sister businesses.

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The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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