Final answer:
In the context of corporate restructuring, a corporate merger is defined as a combination of firms in the same industry. Antitrust laws regulate these mergers to maintain market competition. Conglomerates are diversified corporations with unrelated business units that can offset financial risks within the corporate group.
Step-by-step explanation:
A corporate merger involves two private firms joining together to operate under common ownership. It could also be referred to as an acquisition when one firm purchases another, although the acquired firm might continue under its original name.
However, antitrust laws may sometimes intervene to prevent large firms from forming through mergers and acquisitions, ensuring that competition remains active in the marketplace.
Another form of corporate structure is a conglomerate. This type of corporation owns at least four businesses that produce unrelated products, allowing it to leverage diversification to protect itself financially.
If one component of the conglomerate struggles, the other businesses may buttress the conglomerate's overall profits.
Restructuring often accompanies mergers or acquisitions, which can lead to job losses or shifts in operational strategy, such as closing factories or altering employment practices to cut costs.