conglomerate (redirected from conglomerates)

Conglomerate

A company that consists of a grouping of businesses from unrelated streams.

Notes:

Conglomerates diversify their business risk through profit gained from profit centers in various lines of business. However, some may become so diversified and complicated that they are too difficult to manage efficiently.

Since their large popularity from the 1960s to 80s, many conglomerates have reduced their profit centers to a choice few.

See also: Diversification, Profit Center

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Conglomerate

A firm engaged in two or more unrelated businesses.

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conglomerate

A company engaged in varied business operations, many of which seem unrelated. A conglomerate is designed to have reduced risk, since its various operations are affected differently by business conditions over time. In addition, it is possible for a conglomerate to redistribute its corporate assets depending on which operations show the most promise. Conglomerates were popular among investors during the 1960s but investors' interest in them faded during the 1970s and the 1980s.