Question

In the context of corporate restructuring, what is a common objective of a conglomerate merger?

a) Achieving economies of scale
b) Consolidating within the same industry
c) Expanding into unrelated industries
d) Eliminating direct competitors

Answer 1

A common objective of a conglomerate merger is expanding into unrelated industries.

Step-by-step explanation:

A common objective of a conglomerate merger in the context of corporate restructuring is expanding into unrelated industries. A conglomerate is a company that owns multiple businesses that produce unrelated products. By merging with other companies in different industries, a conglomerate can diversify its operations and reduce risk. This strategy allows the conglomerate to leverage its expertise and resources across multiple industries, ultimately leading to potential growth and profitability.