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A company with four or more businesses that make unrelated products is called a __ A) horizontal merger B) vertical merger C) conglomerate D) multinational

Pergunta

A company with four or more businesses that make unrelated products is called a __
A) horizontal merger
B) vertical merger
C) conglomerate
D) multinational

A company with four or more businesses that make unrelated products is called a __ A) horizontal merger B) vertical merger C) conglomerate D) multinational

Solução

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WanessaMestre · Tutor por 5 anos

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'C'

Explicação

## Step 1<br />The problem is asking us to identify the term for a company that has four or more businesses making unrelated products. We need to understand the definitions of the terms given in the options.<br /><br />## Step 2<br />A horizontal merger refers to the combination of firms that operate in the same or similar industry. This is not the correct answer because the problem specifies that the companies make unrelated products.<br /><br />## Step 3<br />A vertical merger is the combination of two or more companies that operate in the same industry but at different stages of the production path. This is also not the correct answer because the problem specifies that the companies make unrelated products.<br /><br />## Step 4<br />A conglomerate is a company that is made up of a number of different, seemingly unrelated businesses. In a conglomerate, one company owns a controlling stake in a number of smaller companies, which conduct business separately. This is the correct answer because it matches the description given in the problem.<br /><br />## Step 5<br />A multinational is a corporation that operates in multiple countries. This is not the correct answer because the problem specifies that the companies make unrelated products.
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