A conglomerate is a large corporation that consists of multiple diverse businesses operating in different industries. These companies are often acquired or merged to create a more extensive and varied portfolio, which can help reduce risk and increase overall profitability. For example, a conglomerate might own companies in sectors like technology, healthcare, and consumer goods. Conglomerates can benefit from economies of scale, allowing them to operate more efficiently and leverage resources across their various businesses. This structure can also provide financial stability, as the performance of one sector can offset losses in another. Well-known examples of conglomerates include General Electric and Berkshire Hathaway.