Explain : Conglomerates
A conglomerate is a corporation that is made up of a number of different, sometimes unrelated businesses. In a conglomerate, one company owns a controlling stake in a number of smaller companies all of whom conduct business separately and independently.
Conglomerates often diversify business risk by participating in a number of different markets, although some conglomerates, such as those in mining, elect to participate in a single industry. Economists, however, warn that large and far-flung conglomerates can actually become inefficient and costly to maintain, eroding value for shareholders.
