Question

discuss the different from of holding company explain it's merits and demerits​

Answer 1

Answer:

A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group.

Advantages and Disadvantages of Holding Company

• 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. ...
• Over capitalization. ...
• Misuse of power.

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