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