two principal advantages of holding companies are (1) the holding company can control a great deal of assets with limited equity and (2) the dividends received by the parent from the subsidiary are not taxed if the parent holds at least 50% of the subsidiary's stock.

Question

Quizplus · Accepted Answer

The second advantage is incorrect; dividends received by a parent company from a subsidiary are typically subject to taxation, although there may be tax reliefs or credits available depending on the jurisdiction.

Two Principal Advantages of Holding Companies Are (1) the Holding