Reasons for diversification not being good for mergers. Diversification: Diversification is an action through which a company acquires the controlling interest of another company in order to get the benefit of acquiring another company by expanding its business. It is one of the risk management techniques. It is a strategy to enter into the new market by creating new products or by expanding the product line.

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Chapter 29, Problem 3CQ

Summary Introduction

To explain: Reasons for diversification not being good for mergers.

Diversification:

Diversification is an action through which a company acquires the controlling interest of another company in order to get the benefit of acquiring another company by expanding its business. It is one of the risk management techniques. It is a strategy to enter into the new market by creating new products or by expanding the product line.

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