Definition of Parent company:
Parent companies can be conglomerates, made up of a number of different, seemingly unrelated businesses, like General Electric (GE), whose diverse business units are able to benefit from cross-branding. A parent company, however, is different from a holding company. Parent companies conduct their own business operations, unlike holding or shell companies which are set up specifically to passively own a group of subsidiaries—often for tax purposes.
A parent company is a company that has a controlling interest in another company, giving it control of its operations. Parent companies can be either hands-on or hands-off owners of its subsidiaries, depending on the amount of managerial control given to subsidiary managers, but will always maintain a certain level of active control.
Firm that owns or controls other firms (called subsidiaries) which are legal entities in their own right. Also called parent corporation. See also holding company.
How to use Parent company in a sentence?
- The parent company was the final deciding factor on the whether the change would be implemented as they always had the final say.
- The parent company would be going under soon and that was bad news for us because they were our parent company .
- Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger.
- A parent company is a single company that has a controlling interest in another company or companies.
- Parent companies must account for their subsidiaries appropriately on their financial statements and for tax purposes.
- You may want to stick close to your parent company and follow their lead when things start to get rough.
Meaning of Parent company & Parent company Definition