GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A corporation that has at least four businesses, each making unrelated products, none of which is respon-sible for a majority of its sales, is called a
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multinational.
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horizontal corporation.
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conglomerate.
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vertical merger.
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Explanation:
Detailed explanation-1: -A conglomerate is a firm that has four or more businesses, each making unrelated products, none of which is responsible for a majority of its sales.
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: -Conglomerate. A merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed.
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