Why Would a Company Choose to Engage in a Conglomerate

question 86

Multiple Choice

Why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

• A)A conglomerate merger is done to reduce risk.
• B)Double taxation does not occur when the merger is with a company outside the normal business environment of the acquiring company.
• C)The conglomerate merger results in reduced liability while the other two types of mergers do not.
• D)It is easier to dissolve a conglomerate merger than the other types of mergers.
• E)Government regulation of conglomerate mergers is minimal.

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Definitions:

Metaphase

A stage of cell division (mitosis or meiosis) where chromosomes align in the middle of the cell before being separated into each of the two daughter cells.

Contains DNA

Refers to cells or structures that hold deoxyribonucleic acid, the molecule carrying genetic instructions.

Digestive Enzymes

Proteins produced by the digestive system to break down food into nutrients in preparation for absorption.

Outer Boundary

The external limit or edge of an area, system, or object, defining its spatial extent or separating it from surrounding environments.