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Meaning of Debentures

A company is ...

Question

A company is known as the holding company of another company if it has control over the other company.

A

True

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B

False

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Solution

The correct option is A True
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.

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Q. A holding company that controls its subsidiaries but is itself a subsidiary controlled by another holding company is known as a/an ______ holding company.

Q. A holding company is one which controls one or more other companies by means of______________.

Q. A company that owns substantial shares in another company to control management and operations by influencing its Board of Directors is known as ____________.

Q. A company which has a control over a subsidiary company is a __________.

Q. A company shall be deemed to be a subsidiary of another, if and only if__.
(1) That other controls the composition of its Board of directors
(2) That other holds more than half of the nominal value of its equity share capital
(3) The first mentioned company is a subsidiary of any company which is that other's subsidiary
(4) That first mentioned company is associate of other company
Select the comet the answer from the options given below-

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