Conglomerate takeover can be best defined as a takeover of:
A)a target company operating in the same line of business as the acquiring company.
B)a target company operating in a different line of business.
C)a company which is a supplier of goods to the acquiring company.
D)a target company in an unrelated type of business.

Question

Quizplus · Accepted Answer

Conglomerate takeover refers to the acquisition of a company that operates in an unrelated line of business from the acquiring company. The acquiring company seeks to diversify its operations and reduce risks by investing in businesses that are not directly related to its core operations. This allows the acquiring company to spread its risks across different industries and profit from the diversified portfolio of businesses.

Conglomerate Takeover Can Be Best Defined as a Takeover Of