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Holding and subsidiary company and associate company
how to write answer of holding and subsidiary company is question comes directly in difference form
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Hey Pakhee! If a question asks you to write the difference between Holding Company and Subsidiary Company, here’s a neat, simple way to answer it in a tabular/difference form:
Difference Between Holding Company and Subsidiary Company
| Aspect | Holding Company | Subsidiary Company |
|---|---|---|
| Definition | A company that holds majority shares/control in another company. | A company controlled by the holding company through majority shares. |
| Control | Has control over the subsidiary company. | Is controlled by the holding company. |
| Ownership | Owns more than 50% shares in subsidiary. | Majority shares are owned by holding company. |
| Function | Controls policies, management, and decisions of subsidiary. | Operates as an independent company but under holding company’s influence. |
| Example | Parent company owning other companies. | Company owned and managed by holding company. |
If you also want to include Associate Company for comparison, here’s a quick addition:
| Aspect | Associate Company |
|---|---|
| Definition | A company in which another company has significant influence (usually 20%-50% shares) but not control. |
| Control | No control, only significant influence. |
| Ownership | Holds 20%-50% shares (equity participation). |
| Function | Independent company with some influence from the investor company. |
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