Asked by Sofia Bernal on Jun 04, 2024

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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.
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Fatima ImranJun 09, 2024
Final Answer :
D
Explanation :
Conglomerate mergers occur when companies diversify in order to stabilize financial results. It involves the combination of companies that produce unrelated products or services in different industries. The purpose of the merger is to achieve greater financial stability by spreading risk across a wider range of products, services and markets.