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parent corporation

Also known as: parent company

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subsidiaries

  • In subsidiary

    …business firm, known as a parent company or holding company. A parent company is generally understood to be one that conducts its own business operations apart from those of its subsidiary or subsidiaries, while a holding company is one whose sole function is that of ownership. By virtue of its…

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use of consolidated statements

  • Budget planning
    In accounting: Consolidated statements

    …consolidated balance sheet of the parent corporation (the corporation that owns the others) does not list its investments in its subsidiaries (the companies it owns) as assets; instead, it includes their assets and liabilities with its own.

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