Consolidation in business refers to the combining of financial statements, assets, and operations of multiple companies into a single, unified entity. It allows investors and stakeholders to gain a comprehensive understanding of the financial health and performance of the consolidated group. Examples include mergers and acquisitions, where multiple businesses come together under a single corporate umbrella. Consolidated financial statements provide a clear picture of the group's financial position, performance, and cash flows. Understanding consolidation is essential for making informed business decisions.