To overcome the conglomerate discount, many conglomerates have sought to establish ____________ for the parent company.

Question

Quizplus · Accepted Answer

Establishing a strong brand for the parent company can help to overcome the conglomerate discount. This allows the company's different divisions or subsidiaries to benefit from the parent company's reputation and can lead to a higher valuation overall. A lobbying group, organizational slack, or a strong CEO may not directly address the issue of the conglomerate discount.

To Overcome the Conglomerate Discount, Many Conglomerates Have Sought to Establish