A drinks company buys an unrelated software firm to spread its risk. That merger is:
AHorizontal
BVertical
CStatutory
DConglomerate
Answer & Solution
Correct answer: D. Conglomerate
1. The businesses are unrelated.
2. Risk reduction is the aim.
3. It is a conglomerate merger.
_Source: OpenStax Introduction to Business, Chapter 4, Forms of Business Ownership._
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