A Conglomerate Merger Will

question 34

Multiple Choice

A conglomerate merger will

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

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Definitions:

Ultra Vires Act

An action or conduct that goes beyond the powers or authority granted by law or under a company's constitution or articles.

Express Powers

Specific rights and powers explicitly given to an entity or governing body through a legal document or statute.

Express Powers

Specific authorities explicitly granted to an entity or official in a legal document or statute.

Articles Of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.