Thursday, November 19, 2015

Term of the Day: Conglomerate

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November 19, 2015
Conglomerate

A conglomerate is a corporation that is made up of a number of different, seemingly unrelated businesses. In a conglomerate, one company owns a controlling stake in a number of smaller companies, which conduct business separately. Each of a conglomerate's subsidiary businesses runs independently of the other business divisions, but the subsidiaries' management reports to senior management at the parent company.

The largest conglomerates diversify business risk by participating in a number of different markets, although some conglomerates elect to participate in a single industry – for example, mining.

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Related Definitions

Conglomerate Boom
Divestiture
Diworsification
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Past Terms of the Day

Brand Identity
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