Parent Company

Captive Insurance: A Subsidiary Created by a Parent Company to Insure Its Own Risks
Captive insurance is a form of self-insurance where a company creates its own subsidiary to manage and insure its risks. Learn about its types, benefits, applications, and related terms.
Carve-Out: A Comprehensive Overview
An in-depth exploration of equity carve-outs, a form of corporate restructuring involving the partial IPO of a subsidiary.
Fellow Subsidiary: Definition and Explanation
A detailed overview of Fellow Subsidiaries within a group of companies, including their roles, importance, and relevant examples.
Immediate Holding Company: Overview and Insights
An in-depth exploration of immediate holding companies, including definitions, categories, historical context, importance, and real-world examples.
Letter of Awareness: A Financial Assurance Tool
A formal letter written by a parent company to a lender, acknowledging its relationship with another group company and its awareness of a loan being made to that company.
Letter of Comfort: Assurance in Financial Dealings
A Letter of Comfort is a document issued by a parent company to a lender to support a subsidiary’s loan application without providing a direct financial guarantee.
Meaning: Transfer of Financial Benefits or Operational Feedback within a Corporation
The return of financial benefits or operational feedback from subsidiaries to the parent company, including the transfer of resources or information between units at the same organizational level.
Parent Company: Holding and Managing Subsidiaries
A comprehensive overview of a parent company, including its definition, historical context, types, key events, and relevance in modern business.
Wholly Owned Subsidiary: Comprehensive Overview
A wholly owned subsidiary is a company whose entire stock is owned by another company, known as the parent company. This structure allows for complete control and streamlined operations between the subsidiary and the parent company.
Consolidated Financial Statement: Integration of Parent and Subsidiary Financial Data
A consolidated financial statement brings together all assets, liabilities, and other operating accounts of a parent company and its subsidiaries. It provides a comprehensive view of the financial health of the entire corporate group.
Parent Company: A Guide to Ownership and Control
A parent company is a company that owns or controls subsidiaries through the ownership of voting stock. It often operates a business itself but may sometimes be referred to as a holding company when it has no business operations of its own.
Subsidiary Company: Definition and Key Details
A comprehensive overview of Subsidiary Companies, highlighting ownership structures, tax implications, and related business terms.

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