A company that acquires a majority of the shares of the other companies with voting rights is regarded as?

Assessment: WAEC SSCE - Commerce - 1993 (Objective) Subject: Commerce

Question 1 Report

A company that acquires a majority of the shares of the other companies with voting rights is regarded as?
Answer Details
A company that acquires a majority of the shares of another company with voting rights is regarded as a "holding company." A holding company is a type of business organization that owns a controlling interest in one or more companies or corporations. Holding companies usually do not engage in any business activities themselves but hold ownership stakes in other companies. The main purpose of a holding company is to control the management and policies of the subsidiary companies, which allows for centralized control and economies of scale. Holding companies can also provide tax and legal advantages for the parent company.

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