The most likely reason for forming a conglomerate is ____.
A)to take advantage of production synergies
B)to acquire additional debt
C)to diversify risk
D)economies of scale

Question

Quizplus · Accepted Answer

Conglomerates are formed to diversify risk by investing in a variety of unrelated businesses. This can help to offset the negative impact of any single business unit underperforming.

The Most Likely Reason for Forming a Conglomerate Is ____