Final answer:
A conglomerate is a multiple-industry company and does not focus on a single product line, local markets, or hierarchical structures but instead benefits from diversified interests across various industries for financial stability.
Step-by-step explanation:
A conglomerate in business terms refers to a large corporation that owns a number of smaller companies across various unrelated industries. This corporate structure allows for extensive diversification, thereby potentially protecting the conglomerate from fluctuations in individual market sectors. A conglomerate does not focus solely on a single line of products, local markets, or strictly hierarchical organization; rather, it typically has a portfolio comprising a variety of business interests and product lines, which can contribute to stability and financial security.
For example, a conglomerate might own companies in the automotive industry, media networks, insurance, and hospitality. Classic examples of conglomerates include International Telephone and Telegraph (ITT), which, beyond its primary business in communications, expanded into insurance, car rental, and hotels. Similarly, Ford Motor Company serves as a modern example with its global presence manufacturing not just automobiles, but also tools, radios, and other products.