Conglomerate 2

Multiple Choice

what does Nestle represent

• Horizontal merger

• Vertical merger

• Conglomerate

Multiple Choice

What does the Idiom mean??

don't put all your eggs into one basket

• don't have all your money in one place as you could lose it all in one go

• don't spend all your money

Multiple Choice

A sole proprietorship is a business that is owned by a single individual. The owner collects all profit from the business and has unlimited liability for its debt.

• True

• False

Multiple Choice

In a partnership, at least two individuals share the management, profit, and liability for the business.

• true

• False

Multiple Choice

A corporation that conducts business in at least two different industries is called a conglomerate.

• True

• False

Multiple Select

Advantages

• > Reducing cost by utilizing fewer inputs that may be shared across subsidiaries.

• > Benefiting from knowledge from the other market.

• > Reducing risk by operating in different markets (risk bearing).

Multiple Select

Disadvantages

• > The requirement for different skills,

• > Not necessarily benefiting from economies of scale

• > Cultural difference.