Holding Company
Financial Dictionary — Corporate Structure
Definition
A holding company is a company that owns or controls other companies. (Control can be achieved through ownership of 50 percent or more of the voting rights or through the exercise of dominant influence.)
Detailed Explanation
A holding company is an entity that owns controlling interests in other companies, influencing decisions through voting power; it may consolidate subsidiaries and manage investments strategically.
Common Uses
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Practical Example
- Example: Teams reference **Holding Company** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.