What characterizes conglomerate integration?

Conglomerate integration is characterized by a company expanding its operations through the acquisition of businesses that are unrelated to its existing operations or products. This strategy is often pursued to diversify the company's portfolio, spreading risk across different industries and markets. By expanding into various sectors, a company can benefit from reduced risk if one particular market experiences downturns.

Through conglomerate integration, businesses can achieve economies of scope, leveraging different skills and resources across sectors, while also potentially increasing overall profitability. This approach allows a company to tap into new revenue streams and innovation opportunities that would not have been accessible through its original business model.

The other choices focus on aspects like merging similar businesses or dominating a specific industry, which describes horizontal integration or vertical integration rather than conglomerate integration. Therefore, the focus on acquiring unrelated businesses distinctly characterizes conglomerate integration.