corporate conglomerates

A corporate conglomerate is a large company that owns and operates multiple businesses across different industries that are often unrelated. For example, a conglomerate may have divisions in manufacturing, entertainment, and finance. This diversification helps manage risk; if one sector struggles, others may perform well. Conglomerates can achieve economies of scale and share resources among their subsidiaries. Prominent examples include companies like General Electric and Berkshire Hathaway. While they offer stability, they can also face challenges in managing diverse operations effectively.