Continental Foods is considering a conglomerate merger with a company that makes storage solutions.A likely reason is:
A)Expand its market share.
B)Develop spin-off companies.
C)Diversification.
D)Meet the requirements to convert to a limited liability company.

Question

Quizplus · Accepted Answer

The likely reason for the merger is diversification, as Continental Foods is considering merging with a company that makes storage solutions, which is an unrelated industry. This will allow Continental Foods to spread its risk across different industries and may help to increase overall profitability. The other options, such as expanding market share, developing spin-off companies, and meeting requirements to convert to a limited liability company, do not seem to be the primary motives for this type of merger.

Continental Foods Is Considering a Conglomerate Merger with a Company