One advantage of conglomerate integration is that the buyer acquires the other company's assets and resources. Which option describes this benefit?

• A. The assets are irrelevant to the merger
• B. The buyer must liquidate assets
• C. The buyer acquires the other company's assets and resources
• D. The buyer loses ownership of acquired assets

Answer: (C)

Conglomerate integration centers on expanding into different, unrelated lines of business and gaining control over a broader set of assets and capabilities. The benefit described—where the buyer acquires the other company’s assets and resources—captures the essence of this move. By taking ownership, the buyer immediately gains access to things like brands, technology, distribution networks, skilled personnel, and cash flows. This opens opportunities to redeploy these resources across the new, diversified portfolio, pursue cross-business synergies, and spread risk across different markets.

The other statements don’t fit the benefit of this approach. Assets aren’t irrelevant to the merger, because owning and leveraging them is a core source of value. Liquidating assets isn’t the advantage being highlighted; it’s about acquiring and integrating valuable assets. Finally, losing ownership of acquired assets contradicts the whole premise of an acquisition, where control and integration of those assets into the buyer are the goals.