One reason for a conglomerate merger when diversifying into new markets is to reduce the risk associated with adverse conditions in any single market.

Question

Quizplus · Accepted Answer

Conglomerate mergers involve combining companies that are in different industries or markets, which can reduce the risk associated with adverse conditions in any single market. This diversification helps protect the overall business from fluctuations in one particular market, as losses in one market may be offset by gains in another.

One Reason for a Conglomerate Merger When Diversifying into New