To reduce risk of vulnerability to downturns in single markets, corporations would consider what type of merger?
A) a horizontal merger
B) a conglomerate merger
C) a vertical merger
D) a downward merger

Question

Quizplus · Accepted Answer

A conglomerate merger involves combining companies with unrelated businesses, which can reduce risk and vulnerability to downturns in single markets. This is because the corporation is not solely reliant on one market for its profits and can diversify its revenue streams. Horizontal mergers involve combining companies in the same industry, vertical mergers involve combining companies in different stages of the same industry, and downward mergers involve a larger company acquiring a smaller company that supplies it with goods or services. While these types of mergers may offer benefits, they do not necessarily reduce vulnerability to downturns in single markets.

To Reduce Risk of Vulnerability to Downturns in Single Markets