The reduction of risk resulting from combining firms with differing seasonal or cyclical patterns of sales or earnings is a key benefit of ________.
A) congeneric merger
B) conglomerate merger
C) horizontal merger
D) vertical merger

Question

Quizplus · Accepted Answer

Conglomerate mergers involve the combination of companies with unrelated businesses, which can result in diversification benefits, including the reduction of risk resulting from combining firms with differing seasonal or cyclical patterns of sales or earnings. This can be particularly advantageous during economic downturns or other periods of market volatility.

The Reduction of Risk Resulting from Combining Firms with Differing