A merger between a shoelace company and a soup company might be undertaken to
A) eliminate a potential competitor
B) enhance a supplier-purchaser relationship
C) diversify assets and production
D) raise the Herfindahl-Hirschman Index in the shoelace industry
E) raise the concentration ratio in the soup industry

Question

Quizplus · Accepted Answer

A merger between a shoelace company and a soup company would likely be aimed at diversifying assets and production, as these two companies operate in completely different industries and there is no direct competitive or supplier-purchaser relationship between them.

A Merger Between a Shoelace Company and a Soup Company