Select the correct option related to conglomerate.

A. Merger between firms that are involved in totally unrelated business activities

B. Eg Coca-Cola and Pepsi

C. Eg Walt Disney Company and American Broadcasting company

D. These are two types -Pure and Mixed

E. Merger between companies which operate in the same space

Choose the correct answer from the options given below:

A, C, and D only

The correct answer is option (1) - A, C, and D only

Conglomerate: A merger between firms that are involved in totally unrelated business activities (A). There are two types of conglomerate mergers: pure and mixed (D). Pure conglomerate mergers involve firms with nothing in common, while mixed conglomerate mergers involve firms that are looking for product extensions or market extensions. Example: A leading manufacturer of athletic shoes merges with a soft drink firm. The resulting company is faced with the same competition in each of its two markets after the merger as the individual firms were before the merger. One example of a conglomerate merger was the merger between the Walt Disney Company and the American Broadcasting Company.(C)

• B. Eg Coca-Cola and Pepsi: While both are beverage companies, they directly compete in the same market space, making them more an example of a vertical merger rather than a conglomerate.
• E. Merger between companies which operate in the same space: This definition is too broad and doesn't capture the essence of unrelated business activities in a conglomerate. Mergers within the same space can also include horizontal mergers (between direct competitors) or vertical mergers (along the supply chain).