What are the advantages and disadvantages of holding companies?
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