ECONOMICS

Detailed explanation-1: -The holding company is the company that holds the majority voting shares of another company, referred to as its subsidiary.

Detailed explanation-2: -What Is a Subsidiary? In the corporate world, a subsidiary is a company that belongs to another company, which is usually referred to as the parent company or the holding company. The parent holds a controlling interest in the subsidiary company, meaning it has or controls more than half of its stock.

Detailed explanation-3: -A wholly-owned subsidiary is a company whose common stock is 100% owned by a parent company. Wholly-owned subsidiaries allow the parent company to diversify their product lines, streamline management, and possibly reduce risk. By its nature, a wholly-owned subsidiary has no obligations to minority shareholders.

Detailed explanation-4: -A conglomerate is a corporation made up of several different, independent businesses. In a conglomerate, one company owns a controlling stake in smaller companies that each conduct business operations separately. Conglomerates can be created in several ways, including mergers or acquisitions.

Detailed explanation-5: -The owning company, which is called the parent or holding company, usually owns more than 50% of its voting stock (it can be half plus one share more) of the subsidiary. Despite the stake in ownership, the subsidiary and parent companies remain separate legal entities for liability, tax, and regulatory reasons. 1.