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  2. Controlling other companies

    A holding company typically exists for the sole purpose of controlling other companies. Holding companies may also own property, such as real estate, patents, trademarks, stocks, and other assets. This structure serves to limit the financial and legal liability exposure of the holding company (and of its various subsidiaries).
    www.investopedia.com/terms/h/holdingcompany.asp
    www.investopedia.com/terms/h/holdingcompany.asp
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  3. People also ask
    What are the benefits of a holding company structure?This separation of ownership and management can offer several advantages for businesses such as: One of the significant benefits of a holding company structure is its ability to shield assets. As each subsidiary operates as a separate legal entity, the liabilities of one subsidiary typically does not impact the assets of others.
    What is a holding company structure?In a typical holding company structure, the subsidiary companies do manufacture, sell, or otherwise conduct business. These are called operating companies. Other subsidiary companies hold real estate, intellectual properties, vehicles, equipment, or anything else of value that is used by the operating companies.
    Does a holding company have its own business operations?For example, there will be a pure holding company at the top and many intermediate holding companies that are its subsidiaries-wholly owned or partially owned. As the name implies, it is a mixture of a holding company and an operating company. Thus it performs both tasks. It does have its own business operations.
    What is a holding company?A holding company is also sometimes called an “umbrella” or parent company. A holding company is a type of financial organization that owns a controlling interest in other companies, which are called subsidiaries. The parent corporation can control the subsidiary’s policies and oversee management decisions but doesn’t run day-to-day operations.
     
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