For a given country, which conditions will favor the formation of conglomerates?
I.limited financial markets;
II.poor investor protection;
III.difficulty accessing international capital markets;
IV.limited and transparent government

Question

Quizplus · Accepted Answer

Conglomerates often form in environments where financial markets are limited, investor protection is poor, and there is difficulty accessing international capital markets. These conditions make it challenging for companies to raise capital, leading them to diversify and merge to pool resources and mitigate risks. A limited and transparent government does not directly favor the formation of conglomerates.

For a Given Country, Which Conditions Will Favor the Formation