Question : Case Study 18:
LMN Corporation is a conglomerate planning to diversify its operations by entering the healthcare industry.
Question :
LMN Corporation is diversifying into the healthcare industry. Which market activity would be related to this diversification?
Option 1: Currency swap
Option 2: Equity share issuance
Option 3: Mergers and acquisitions
Option 4: Treasury bill trading
Correct Answer: Mergers and acquisitions
Solution : The correct answer is (c) Mergers and acquisitions
Diversifying into the healthcare industry often involves strategic moves like mergers and acquisitions, where LMN Corporation may acquire existing healthcare businesses or merge with healthcare-related companies to expand its operations and presence in this new sector. Mergers and acquisitions are common strategies for corporations looking to enter new markets and diversify their business portfolio.
To finance its entry into the healthcare industry, LMN Corporation is considering issuing bonds. What type of market activity is this?
Option 1: Secondary market
Option 2: Primary market
Option 3: Money market trading
Option 4: Equity share issuance
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile