Poser as Gas and Hanson do splits

1 	Hanson Trust is a conglomerate. What is a conglomerate?

2 	What are the advantages of being a conglomerate?

3 	What strategy has the company used to grow?

4 	Why would Lord Hanson wish to dismember the corporation?

5 	Draw a supply and demand diagram to show the City's reaction to the news 	from Hanson Trust.

6 	One argument against a conglomerate is that it may experience 			diseconomies of scale. Draw a long-run average cost curve and label it to 		show diseconomies of scale.

7 	Identify one other reason why a conglomerate may experience problems in 	the long term.