A conglomerate occurs when:
A) the products of the merging firms were not related in any manner before the merger
B) one firm is a producer of products, and the other firm is a producer of services
C) one firm is a domestic firm, and the other is a foreign company
D) the firms stood in a buyer-seller relationship before the merger
E) the merger partners were competitors

Question

Quizplus · Accepted Answer

A conglomerate occurs when the products of the merging firms were not related in any manner before the merger. This means that the merging firms were not in the same industry or producing similar products.

A Conglomerate Occurs When