What is the definition of a parent company
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He organized a small group within the parent companyLuftschiffbau-Zeppelin, in He made short-term contracts, and tried in every way to keep control of the whole system in the hands of the parent company. Meanwhile public opinion on this side was far more unfavorable, and the parent company found itself without means or credit.
They were in the credit account of Gordon and Gordon, every dollar of which justly belonged to the parent company. The Best Internet Slang. Parent companies can either be conglomerates or holding companies.
What is a Parent Company?
A conglomeratesuch as General Electric, is a huge company with its own business venture that also owns other companies with their own business ventures. A holding companyon the other hand, is put in place specifically to own a group of subsidiaries and does not conduct its own business operations.
Holding companies normally form to realize tax advantages among a connected group of smaller companies. Companies can become parent companies by many different means.
The two most common ways are through the acquisitions of smaller companies and the spinoff or creation of subsidiaries.
For the purposes of accounting, parent companies report results of subsidiaries on audited statements when subsidiaries fall under the same corporate identity.
Related Terms core HR core human resources Core HR core human resources is an umbrella term that means the basic functions of an HR department; the basic data captured Add My Comment Register. Login Forgot your password?
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A parent company, however, typically has its own business ventures and purchases its subsidiaries for investment purposes or to aid in its own operations. According to the U. Code, a personal holding company is a corporation not owned by more than five people whose income derives from the ownership of certain property or investments.
This type of income includes rent, royalties, dividends and interest. Personal holding companies cannot include life insurance companies, tax-exempt corporations, surety companies, foreign corporations or most finance and lending institutions. Christine Aldridge is a financial planner who has been writing articles related to personal finance since She has bachelor's degrees in political science from North Carolina State University and in accounting from University of Phoenix.