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.
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.
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.
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.
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.
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.
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.
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