USA HISTORY

Detailed explanation-1: -A holding company refers to a company that controls one or more companies either by holding majority of share of that company or by controlling the composition of Board of Directors.

Detailed explanation-2: -A holding company is a type of financial organization that owns a controlling interest in other companies, which are called subsidiaries. The parent corporation can control the subsidiary’s policies and oversee management decisions but doesn’t run day-to-day operations.

Detailed explanation-3: -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-4: -If the parent company controls all the voting stock of the other firm, that organization is called a wholly-owned subsidiary of the parent company.

Detailed explanation-5: -Tip. A holding company is a parent company designed to own or control other businesses. A subsidiary is owned or controlled by a parent company, but that parent company might not be a holding company.