A businessman tries to regulate or minimise the danger, however cannot eliminate the risks. This type of diversification strategies have resulted in companies taking over newer varieties as they evolve through the years. Conglomerate – This type of merger entails companies from different industries. This might result in higher useful resource allocation and synergy and transfer of managerial capabilities. Long-term curiosity of the business could additionally be ignored to maximise profits within the short-run. Profit maximization ignores the interests of labour, clients and the society.
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