A parent company refers to an organization with a certain equity or subsidiary. The parent company may or may not be listed. Only joint-stock companies can be divided into parent companies and subsidiaries, and the equity connection of joint-stock companies can control the assets, funds, profits and responsibilities of subsidiaries for the parent company.
The parent company is the overall person in charge of the subsidiaries in the management entity, responsible for integrating, managing and analyzing the business and financial conditions of the subsidiaries, maintaining the consistency of management among the subsidiaries and supervising the performance of the responsibilities of the subsidiaries. The parent company is responsible for implementing the strategy of the parent company group, limiting the scope of activities and feasible policies of subsidiaries, increasing market share in time and maximizing the overall profit of the group.