BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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All conglomerates are multinationals.
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All multinationals are conglomerates.
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A conglomerate is another term for a multinational.
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A multinational is often a conglomerate.
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Detailed explanation-1: -Understanding Conglomeration Often, a conglomerate is a multi-industry company and is often large and multinational. Conglomeration started to become common in the 1950s because it was and still is a convenient way for parent companies to operate several related or complementary firms in conjunction with each other.
Detailed explanation-2: -There are many reasons for conglomerate mergers, such as increased market share, synergy, and cross-selling opportunities. These could take form in advertising, financial planning, research and development (R&D), production, or any other area.
Detailed explanation-3: -A merger between a clothing producer and a media company is an example of a conglomerate merger.
Detailed explanation-4: -A conglomerate diversification strategy helps lessen the risk of loss. For example, if one business sector experiences a decline, other business sectors compensate for the losses. Products cross-selling. A conglomerate merger allows companies to cross-sell their products when the target market is similar.