A parent company is a corporation or entity that holds a controlling interest in another company or subsidiary. By owning a majority of the subsidiary’s voting shares or having the ability to exercise control over its operations, the parent company has the power to direct the subsidiary’s strategic decisions, financial activities, and overall management. The parent company typically consolidates the financial statements of the subsidiary into its own financial statements. Parent companies often provide resources, expertise, and support to their subsidiaries, enabling them to benefit from shared resources and synergies while maintaining overall control.
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