Red Tide Inc., an electronics manufacturer, merges with Dew 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 Red Tide Inc. and Dew Corp. is an example of a conglomerate merger, where two companies from unrelated industries merge to diversify their portfolio and reduce the risk of exposure to unfavorable market conditions in any single market.