What Is Considered a Conglomerate?

  • A conglomerate is often an international corporation that manages operations around the world. Whether a corporation is a national or international conglomerate, no one subsidiary should account for a majority of its revenue or success. A common problem that conglomerates face is that they frequently accumulate massive debts when expanding businesses and taking on new operations. For a conglomerate to see a profitable growth, the corporation must manage debt carefully. Low levels of debt increase a corporation’s financial strength and earnings. General Electric, Hitachi, Emerson Electric, ITT Industries and Textron rank among the world’s most powerful conglomerates, according to Forbes.com. Many of the world conglomerates see profit earnings in the billions.