Question

Select the correct option related to conglomerate.
A. Merger between firms that are involved in totally unrelated business activities
B. Eg Coca-Cola and Pepsi
C. Eg Walt Disney Company and American Broadcasting company
D. These are two types - Pure and Mixed
E. Merger between companies which operate in the same space
Choose the correct answer from the options given below:

• A. A, C, and D only
• B. A, B and C only
• C. C, D and E only
• D. B, C and D only

Hint:

Conglomerate mergers involve firms in unrelated industries, helping companies diversify risk.

Answer 1

The Correct Option is A

A conglomerate merger involves merging two firms that are involved in unrelated business activities, such as Coca
-Cola and Pepsi. These mergers are typically of two types: pure and mixed.