Which of the following is a benefit of conglomerate integration?

Conglomerate integration refers to the strategy where a company expands its operations by acquiring businesses that are in different industries or markets. This approach brings about various advantages, one of which is the ability to spread risk across different markets.

When a company operates in multiple industries, the performance of one segment can offset the poor performance of another. For example, if a conglomerate is operating in both the technology and food sectors, a downturn in the tech market might not significantly impact the company’s overall performance if its food sector is thriving. This diversification allows the conglomerate to maintain stability and manage financial risk more effectively because the fluctuations in different industries tend to occur at different times and are affected by different external factors.

The other options present valid concepts but do not directly tie into the core advantages of conglomerate integration. Consistency in product quality generally pertains to companies within the same industry focusing on maintaining standards. Reduced operational complexity is more applicable to companies consolidating similar operations rather than diversifying into different markets. Increased employee satisfaction can occur in various business scenarios, but it is not a specific advantage linked to conglomerate integration itself.