A conglomerate merger will: allow the firm to have a less dominant position in its market. diversify business operations and investments. enable the firm to enjoy a higher degree of specialization. give the firm a more secure access to needed materials and components and better control over quality.

Question

Anastasia

Business

19 July, 00:11

A conglomerate merger will: allow the firm to have a less dominant position in its market. diversify business operations and investments. enable the firm to enjoy a higher degree of specialization. give the firm a more secure access to needed materials and components and better control over quality.

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Janelle Randall · Answer 1

Diversify business operations and investments

Explanation:

A merger refers to a corporate agreement between two firms agreeing to share resources and skills jointly or in a collaboration, with an objective of gaining a greater market share collectively.

Conglomerate merger refers to a form of merger agreement wherein, the two merging firms deal in completely unrelated products or services or operate in different industries.

The benefits such a merger yields are, increment in the market share, business diversification i. e dealing in new products and exploring new markets, cross selling of products and synergistic benefits.