When unrelated diversification is taken to the extreme and there are many unrelated businesses, the firm is referred to as a ________.
A) monopoly
B) conglomerate
C) oligopoly
D) cartel

Question

Quizplus · Accepted Answer

Conglomerate refers to a company that has diversified into unrelated businesses. This is often done to spread risk and reduce dependence on any one particular industry. A monopoly refers to a company that has a dominant position in a particular market, while an oligopoly refers to a market dominated by a small number of large firms. A cartel refers to a group of firms that agree to work together to reduce competition and increase prices.

When Unrelated Diversification Is Taken to the Extreme and There