All of the following are true about conglomerates EXCEPT:
A) They follow the unrelated diversification strategy.
B) They are able to overcome institutional weaknesses such as a lack of capital markets in emerging economies.
C) Less than 70 percent of their revenues come from a single business.
D) They are likely acquisition targets for large single-business firms.

Question

Quizplus · Accepted Answer

Conglomerates are generally very large firms and therefore not the subject of acquisitions. Further, a single-business firm, no matter how large, is very unlikely to want to diversify by purchasing a huge conglomerate.

All of the Following Are True About Conglomerates EXCEPT