Question

Companies such as Time Warner have extensive holdings in radio and television stations, cable television companies, book publishing firms, and film production and distribution companies. These companies are referred to as __________.

Answer 1

Answer:

Conglomerates.

Explanation:

A business conglomerate, which is characterized by the joining of two or more companies that may be from different areas of activity, but which are under the same corporate structure, that is, companies that depend on the same matrix. It is considered a form of oligopoly, which grows as new companies join the conglomerate and increases the profitability of existing companies.

The main objectives of this business group is to increase financial gains and expand the organizations that are part of the group, so the conglomerate focuses on management and use of equipment and search for capital resources.