What is the primary motive behind a conglomerate merger?
Explanation
This question tests the definition of a conglomerate merger and its underlying strategic purpose, which is diversification for risk management.
Other questions
According to the data presented, what percentage of all businesses are sole proprietorships and what approximate percentage of total business revenues do they generate?
What is considered a primary disadvantage of the sole proprietorship form of business organization?
In a limited partnership, what is the role of the limited partners?
Within the corporate structure, what is the primary responsibility of the board of directors?
What is a key advantage of a corporation that allows it to raise significant capital for expansion?
Which specialized form of business organization involves two or more companies forming an alliance to pursue a specific project, usually for a specified time period?
What is a major disadvantage of franchising for the franchisee?
A merger between a company and one of its suppliers is an example of what type of merger?
What is the maximum number of qualifying shareholders an S corporation is allowed to have?
What is the term for the legal entity that combines members' purchasing power, allowing them to gain efficiency and lower prices through volume buying?
In a corporate takeover financed by as much as 90 percent borrowed money, often started by outside investors or management, what is this specialized merger type called?
Which of the following is an advantage of a partnership over a sole proprietorship?
What document, issued by the state, officially creates a corporation and is based on the articles of incorporation?
When the company Pacific Sunwear (PacSun) first sold stock to the public in 1993, what form of business organization did it become?
A merger of companies in unrelated businesses, such as a tobacco company buying a food company, is done to reduce risk and is known as what?
Which demographic group is identified in the text as a key driver of growth in fitness, weight-loss, and eldercare franchises?
What is the primary difference between a merger and an acquisition?
In the context of the incorporation process, what is the purpose of adopting bylaws?
Which type of partnership limits the liability of some partners to the amount of their investment, provided they do not participate in management?
What is the term for individual producers, such as in agriculture, joining together to compete more effectively with large producers?
What is a significant drawback of a partnership that is not present in a sole proprietorship?
In a corporate structure, who are the actual owners of the corporation?
What type of business organization is described as a hybrid that offers the liability protection of a corporation and the option of being taxed as a partnership, and is popular with small businesses?
According to the text, what was the approximate value of the merger between Johnson Controls and Tyco International in 2016?
Which of the following is NOT listed as one of the main motives for mergers and acquisitions?
What is a franchise agreement?
A key disadvantage for a sole proprietor is 'unstable business life.' What does this refer to?
What is the primary reason a written partnership agreement is recommended?
What is the primary advantage of the corporate form of business that protects its owners' personal assets?
Which company, known for its unique on-site computer assistance, is used as a primary example of a franchise that an entrepreneur could choose?
What is one of the main strategic goals of a horizontal merger?
According to the text, what percentage of franchised businesses provided about 8.9 million direct jobs in the U.S. economy?
What is the key difference between an S corporation and a C corporation regarding taxation?
What does 'financial restructuring' as a motive for an acquisition typically involve?
According to a survey mentioned in Section 4.7, what percentage of baby boomers plan to work in some capacity during their retirement years?
Which of the following is listed as an advantage of franchising for the franchisee?
In a partnership, what does the term 'unlimited liability' mean for a general partner?
According to the text, what is a key reason for the recent boom in mergers and acquisitions?
What is the primary feature of a sole proprietorship's taxation?
A corporation is a legal entity chartered by which level of government?
What is the term for the business organization where an individual establishes, owns, operates, and often finances the business alone?
Which of the following documents is NOT typically included in a corporation's articles of incorporation?
What does a franchise agreement typically require the franchisee to do?
According to the text, a recent trend in business ownership is the increase in foreign direct investment and cross-border acquisitions. What was the total value of worldwide merger deal volume in 2016?
The ability to exist indefinitely, not affected by the death or withdrawal of an owner, is an advantage known as 'unlimited life' and is characteristic of which business form?
In the case study about Pacific Sunwear (PacSun), the company filed for bankruptcy in April 2016 and subsequently turned over all its stock to which entity?
What is the primary reason that a Limited Liability Partnership (LLP) is formed?
What is considered a significant factor that may prompt a successful sole proprietorship to change its form of business organization as it grows?
In the case study about the Green Bay Packers, what happens to any proceeds from a possible sale or liquidation of the team?