Conglomerate mergers often occur when businesses are trying to:
A)increase their market share in their own product lines.
B)secure a source of supply for raw materials.
C)secure their distribution network.
D)diversify to stabilize financial results.
E)None of the above describes conglomerate mergers.

Question

Quizplus · Accepted Answer

Conglomerate mergers occur when companies diversify in order to stabilize financial results. It involves the combination of companies that produce unrelated products or services in different industries. The purpose of the merger is to achieve greater financial stability by spreading risk across a wider range of products, services and markets.

Conglomerate Mergers Often Occur When Businesses Are Trying To