The emergence of "conglomerates"-widely diversified companies-during the 1960s and 1970s was a result of:
A)The desire of companies to escape low growth industries
B)The belief that the tools of strategic and financial management could be applied to any type of business
C)The willingness of some CEOs to ignore shareholder interests and order to build large corporate empires
D)Loose monetary policies that increased the availability of corporate finance.

Question

Quizplus · Accepted Answer

The emergence of conglomerates was due to the belief that the tools of strategic and financial management could be applied to any type of business. This led to the idea that diversification into any industry could result in increased growth and profitability. The other options (A, C, and D) may have played a role, but the primary driving force was the belief in management's ability to adapt their skills to any industry.

The Emergence of "Conglomerates"-Widely Diversified Companies-During the 1960s and 1970s