Examples of cross-holdings include: I.Japanese keiretsu

Question

Quizplus · Accepted Answer

Cross-holdings refer to the practice of companies holding shares in each other, often to create a mutually supportive business environment. The Japanese keiretsu system is a good example of cross-holdings, where companies within the same group hold equity stakes in each other to maintain close business relationships. Options I and IV both refer to Japanese keiretsu, so choice C is the best answer. Option II refers to vertical integration, where a company owns suppliers or distributors, whereas option III refers to conglomerates, where a company owns unrelated businesses. Neither of these directly relates to cross-holdings.

Examples of Cross-Holdings Include: I.Japanese Keiretsu