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 portfolio, allowing the conglomerate to spread risk and increase revenue streams. For example, a conglomerate might own companies in sectors like technology, food and beverage, and construction. Conglomerates can benefit from economies of scale, which means they can reduce costs by sharing resources across their various businesses. Additionally, they can leverage their financial strength to invest in new opportunities or support struggling subsidiaries. This diversification helps stabilize the overall company during economic fluctuations.