What are the advantages and disadvantages of holding companies?

Answer 1

Advantages of a Holding company

· usually possible to obtain control of another company with less investment

· only needs a controlling interest in the acquired company, not complete interest

· possible to obtain control over large properties with less investment

· shares of stock in the subsidiary company are held as assets on the books of the parent company

Disadvantages of a Holding Company

· Government Sector

· "All departments, offices & other bodies which furnish but normally do not sell to the community those common services, other than higher education, which cannot otherwise be conveniently & economically provided and administer the state & the economic & social policy of the community."

· Has a significant influence on the quality of people's lives. There is a diverse range of jobs in around 600 occupations working in the following broad categories