Parent company
Parent Company
A Parent Company (pronunciation: /ˈpɛrənt ˈkʌmp(ə)ni/) is a large corporation that owns a majority of shares in a smaller company, thereby having control over its operations and management. The term originates from the business world and is often used in the context of mergers and acquisitions.
Etymology
The term "Parent Company" is derived from the concept of a parent-child relationship. In this context, the parent company is the dominant entity, controlling the operations of the subsidiary or child company.
Definition
A Parent Company is a corporation that owns enough voting stock in another firm (the subsidiary) to control its board of directors and, therefore, its policies and management. This relationship between the parent company and the subsidiary is defined by the percentage of ownership and the level of control the parent company has over the subsidiary.
Related Terms
- Subsidiary: A company that is completely or partly owned and wholly controlled by another company that owns more than half of its voting stock. The owner is usually referred to as a parent company or holding company.
- Holding Company: A company that doesn't have any operations, activities, or other active business itself. Instead, the holding company owns assets in the form of shares of other companies.
- Conglomerate: A corporation made up of several different, seemingly unrelated businesses. In a conglomerate, one company owns a controlling stake in a number of smaller companies.
- Merger: A merger is an agreement that unites two existing companies into one new company. Mergers and acquisitions are commonly done to expand a company's reach, expand into new segments, or gain market share.
- Acquisition: An acquisition is a corporate action in which a company buys most, if not all, of another firm's ownership stakes to assume control of it.
External links
- Medical encyclopedia article on Parent company
- Wikipedia's article - Parent company
This WikiMD article is a stub. You can help make it a full article.
Languages: - East Asian
中文,
日本,
한국어,
South Asian
हिन्दी,
Urdu,
বাংলা,
తెలుగు,
தமிழ்,
ಕನ್ನಡ,
Southeast Asian
Indonesian,
Vietnamese,
Thai,
မြန်မာဘာသာ,
European
español,
Deutsch,
français,
русский,
português do Brasil,
Italian,
polski