2. The holding company not only has financial control over its subsidiaries, but also has operational control, and has the right to decide the appointment of important personnel and the determination of major policies, and even directly send people to operate and manage them. Also known as parent-subsidiary system.
3. A company that owns shares of other companies and can actually control its business activities is called the parent company, sometimes also called the head office; All or part of the assets are owned by the parent company, but companies that are economically and legally independent of the parent company are called subsidiaries. With the extension of controlling rights, Sun Company came into being.
4. Holding companies are different from ordinary companies. It is a collection of enterprises, which is the result of the development of ordinary companies to a considerable scale. Because a company wants to form a holding relationship with other companies, it must have considerable strength. After the holding company is established, it will inevitably form a stronger economic entity than a single company. Therefore, the famous big companies in the world are basically holding companies, and some excellent companies in China are also developing in the direction of holding management.