GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is a major reason for conglomerate mergers?
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diversification
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multinationals
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unlimited life
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conglomeration
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Explanation:
Detailed explanation-1: -The fundamental goal of conglomerate diversification is to increase the acquiring organization’s profitability. With conglomerate diversification, organizations often aim to achieve marketing or production synergy.
Detailed explanation-2: -Advantages of conglomerate mergers 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. A conglomerate merger allows companies to cross-sell their products when the target market is similar.
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