Advantages of Holding Companies?
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Merits or Advantages of Holding Companies
Ease of formation. It is quite easy to form a holding company. ...
Large capital. The financial resources of the holding and subsidiary companies can be pooled together. ...
Avoidance of competition. ...
Economies of large scale operations. ...
Secrecy maintained. ...
Risks avoided.
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Answer:
What are the advantages of the holding company-operating company structure?
Liability protection. Placing operating companies and the assets they use in separate entities provides a liability shield. ...
Control assets for less money. ...
Lower debt financing costs. ...
Foster innovation. ...
Day-to-day management not required.
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