Asked by
Sebastian Chairez De La Hoya
on Dec 01, 2024Verified
The most likely reason for forming a conglomerate is ____.
A) to take advantage of production synergies
B) to acquire additional debt
C) to diversify risk
D) economies of scale
Conglomerate
A large corporation composed of diverse companies operating in various industries under one corporate group.
Production Synergies
The cost-saving or performance-enhancing effects achieved when two or more entities (e.g., companies or departments) combine their production efforts.
Diversify Risk
The strategy of spreading investments across various financial instruments, industries, or other categories to reduce risk.
- Comprehend the reasoning behind mergers, acquisitions, and antitrust legislation.
Verified Answer
AA
Learning Objectives
- Comprehend the reasoning behind mergers, acquisitions, and antitrust legislation.