A merger between firms that are involved in totally unrelated business activities for e.g.: a shoe manufacturing firm merges with a dairy products manufacturer. Such type of mergers are known as _____.
Answer & explanation
Correct answer: option 1
Conglomerate: A merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers
involve firms with nothing in common, while mixed conglomerate mergers involve firms
that are looking for product extensions or market extensions.