Dalton Inc., a cigarette manufacturer, merges with Crimson Corp., a food brand, to make the firms less susceptible to unfavorable market conditions in any single market. This is an example of a _____ merger.

Question

Quizplus · Accepted Answer

The merger between Dalton Inc. and Crimson Corp. is an example of a conglomerate merger, where two companies from different industries merge to diversify their businesses and reduce their vulnerability to market fluctuations in any single industry.