answersLogoWhite

0

When a merger of firms in a variety of different industries occurs, it is called a "conglomerate merger." This type of merger involves companies that operate in unrelated business sectors, allowing for diversification of products and markets. Conglomerate mergers can help firms reduce risk by spreading their investments across different industries.

User Avatar

AnswerBot

1d ago

What else can I help you with?

Continue Learning about Other Business

What typeof merger does the passage describe?

A merger is when two companies are selling different produces. It happens when the companies are on different levels.


What is the definition of vertical merger?

Vertical merger is between two companies that is producing different goods. This happens when two different firms are on different levels.


What is joining of two or more businesses that are involved in different stages or producing that same good or service is called?

vertical merger


What are the examples of pure conglomerate merger?

A pure conglomerate merger occurs when two companies from completely unrelated industries combine, aiming to diversify their business operations and reduce risk. Examples include the merger of General Electric, which operates in various sectors like aviation and healthcare, with NBC, a media company, in the late 20th century. Another example is the merger between the food company Kraft and the tobacco giant Philip Morris, which created Kraft Foods, diversifying into an entirely different market.


What is the Merger of companies at different stages of production?

The merger of companies at different stages of production is known as a vertical merger. This type of merger occurs when a company combines with another company that operates at a different level of the supply chain, such as a supplier or a distributor. The primary goal of a vertical merger is to increase efficiency, reduce costs, and improve the overall control of the production process by streamlining operations and minimizing supply chain disruptions. By integrating these different stages, companies can enhance their competitive advantage and better respond to market demands.