A holding firm is:
A)A financial term to designate any firm
B)A firm that belongs to the state, or is state-related
C)A conglomerate which is highly diversified, and where no linkages exist between its businesses
D)A parent company that owns controlling stakes in several subsidiaries, but, beyond appointing the boards, does not exert significant management control

Question

Quizplus · Accepted Answer

A holding firm is a parent company that owns controlling stakes in several subsidiaries, but does not exert significant management control. This type of company often oversees the strategic and financial decisions of its subsidiaries, but allows each subsidiary to operate independently. Holding firms can be highly diversified, but they maintain a clear link to their subsidiaries through ownership.

A Holding Firm Is