A conglomerate merger will:
A)Diversify business operations and investments.
B)Allow the firm to have a less dominant position in its market.
C)Enable the firm to enjoy a higher degree of specialization.
D)Give the firm a more secure access to needed materials and components and better control over quality.

Question

Quizplus · Accepted Answer

A conglomerate merger involves combining companies in unrelated industries, which diversifies the business operations and investments of the firm. This type of merger is often pursued to spread risk and reduce dependence on a single market or product line. Thus, option A is the correct choice. The other options, B, C, and D, do not accurately describe the benefits of a conglomerate merger.

A Conglomerate Merger Will