Multiple choice

XYZ company holds 50% of voting securities of ABC company. XYZ is

  1. a subsidiary company

  2. a holding company

  3. an associated company

  4. All of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A company may become a holding company by acquiring 50% voting stock in another company to exercise control of its operations. Thus, XYZ is a holding company.