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What Is Conglomerate Diversification? What Are Its Advantages and Disadvantages

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What is conglomerate diversification? What are its advantages and disadvantages?


Definitions:

Inflation

The speed at which the average price of goods and services increases, resulting in a reduction of money's buying power.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Lenders

Lenders are individuals or institutions that provide funds to others with the expectation that the funds will be repaid, usually with interest.

Bonds

Fixed-income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental.

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