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SVEN [57.7K]
3 years ago
7

What is a legal body called that own stock in several companies and so controls those companies?

History
1 answer:
jeyben [28]3 years ago
7 0

Answer:

Holding Company

Explanation:

A Holding Company <u>is a company that enters into a limited partnership by owing a common stock (voting share) in a different company</u><u> </u>(subsidiary company). This is a type of parent company that indirectly exercises control over another company's operations. This situation is what you call an <u>"oversight capacity."</u>

Although the holding company is not that active in the operations of the other company,<u> it has the capacity to control those who are managing the company it owns. This means it can hire and fire people.</u>

Thus, the answer is "holding company.

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