The ____ encouraged the conglomerate merger wave of the 1960s.
A) uncertainty of future cash flows
B) prevalence of low firm performance
C) ability to lower overall firm risk
D) government's antitrust policies and tax laws

Question

Quizplus · Accepted Answer

The government's antitrust policies and tax laws encouraged the conglomerate merger wave of the 1960s by allowing companies to merge in a way that was previously illegal and by offering tax incentives. Conglomerate mergers were seen as a way to diversify and reduce overall firm risk, but critics argued that they often led to inefficiencies and a lack of focus.

The ____ Encouraged the Conglomerate Merger Wave of the 1960s