What do you mean by parent and host company?​

What is meant by parent company?

A parent company is a single company that has a controlling interest in another company or companies. Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger.

Explanation:

What Is a Parent Company?

A parent company is a company that has a controlling interest in another company, giving it control of its operations

A parent company is a company that has a controlling interest in another company, giving it control of its operations. Parent companies can be either hands-on or hands-off owners of its subsidiaries, depending on the amount of managerial control given to subsidiary managers, but will always maintain a certain level of active control.

Explanation:

A parent company is a single company that has a controlling interest in another company or companies.

Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger.

Parent companies must account for their subsidiaries appropriately on their financial statements and for tax purposes.

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