A Conglomerate Merger Will

question 154

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:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.

Consecutive Payments

Regular payments made in a sequence, without interruption, over a specified period.

Long-Term Asset

Assets held by a company for more than one year, intended for use in producing goods or services or held for investment.