Which term describes the group comprising multiple corporations across various sectors under a parent company?

Which term describes the group comprising multiple corporations across various sectors under a parent company?

• A. Co-operation
• B. Franchise
• C. Conglomeate
• D. Municipal authorities

Answer: (C)

A conglomerate describes a single parent company that owns several different companies operating in various industries. This setup keeps the subsidiaries legally separate while allowing centralized control and strategic direction from the parent. The idea is diversification across sectors so the overall business isn’t tied to the performance of one market, helping spread risk and leverage resources like capital and management expertise across the group. Other options don’t fit because a cooperative is a member-owned organization formed to meet shared needs, a franchise is a licensing arrangement to operate a business under another brand, and municipal authorities are local government bodies.

A conglomerate describes a single parent company that owns several different companies operating in various industries. This setup keeps the subsidiaries legally separate while allowing centralized control and strategic direction from the parent. The idea is diversification across sectors so the overall business isn’t tied to the performance of one market, helping spread risk and leverage resources like capital and management expertise across the group.

Other options don’t fit because a cooperative is a member-owned organization formed to meet shared needs, a franchise is a licensing arrangement to operate a business under another brand, and municipal authorities are local government bodies.