The primary advantage of a holding company structure is the potential leverage that can be achieved by gaining effective control of other companies' assets at a lower overall cost than would be required if the firm were to acquire 100 percent of the target's outstanding stock.

Question

Quizplus · Accepted Answer

This statement accurately represents the primary advantage of a holding company structure. By controlling other companies through partial ownership, a holding company can benefit from their assets and operations without the high costs of a full acquisition.

The Primary Advantage of a Holding Company Structure Is the Potential