XYZ Cake Mix Company is merging with the ABC Petroleum Company. This is an example of
A) conglomerate diversification.
B) related diversification.
C) product development.
D) geographic expansion.
E) none of these.

Question

Quizplus · Accepted Answer

Conglomerate diversification involves the merger or acquisition of companies that are in unrelated industries. In this case, the XYZ Cake Mix Company and ABC Petroleum Company are in completely different industries, therefore, this is an example of conglomerate diversification.

XYZ Cake Mix Company Is Merging with the ABC Petroleum