Asked by Sofia Bernal on Jun 04, 2024
Verified
Conglomerate mergers often occur when businesses are trying to:
A) increase their market share in their own product lines.
B) secure a source of supply for raw materials.
C) secure their distribution network.
D) diversify to stabilize financial results.
E) None of the above describes conglomerate mergers.
Conglomerate Mergers
Conglomerate mergers involve companies from unrelated business activities or industries merging, often to diversify business operations and risk.
Market Share
The portion of a market controlled by a particular company or product.
Financial Results
The summary outcomes of a company's operations and activities, often presented in terms of income, revenue, profit, and loss.
- Acquire knowledge of the assorted reasons and driving forces for corporate mergers and acquisitions.
- Understand the strategic objectives underlying corporate reorganizations, such as mergers, acquisitions, and divestments.
Verified Answer
Learning Objectives
- Acquire knowledge of the assorted reasons and driving forces for corporate mergers and acquisitions.
- Understand the strategic objectives underlying corporate reorganizations, such as mergers, acquisitions, and divestments.
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