Multiple choice

What are the types of companies on the basis of management control?

  1. Statutory and Registered Companies

  2. Private Company and Public Company

  3. Company limited by shares and Unlimited Company

  4. Holding and Subsidiary company

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

 Holding and subsidiary company is the type of classification on the basis of control of management. A company is a Holding Company in relation to another company if it possesses control over another company. A company is said to be a subsidiary company if the other controls its composition of Board of Directors, or when the other company holds more than half of its nominal value of equity shares.

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