A conglomerate merger occurs when
A) the goods produced by the merging firms are not related
B) one firm produces goods while the other produces services
C) one firm is a domestic firm while the other is a foreign firm
D) the firms are in a buyer-seller relationship
E) the merging firms produce identical or close substitute goods

Question

Quizplus · Accepted Answer

A conglomerate merger is characterized by the merging of firms that operate in unrelated business activities, meaning the goods or services they produce are not directly related to each other.

A Conglomerate Merger Occurs When