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What is parent company, subsidiary, non controlling interest in consolidated?

What is parent company, subsidiary, non controlling interest in consolidated?

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Parent Company

Parent company is a company that controls other, smaller businesses by owning an influential amount of voting stock or control. Parent companies are typically larger firms that exhibit control over one or more small subsidiaries in either the same industries or complimentary industries. Companies can become parent companies by many different means. The two most common ways are through the acquisitions of smaller companies and the spin off or creation of subsidiaries.

Subsidiary Company

A subsidiary is a company with stock that is more than 50% controlled by another company, which is usually referred to as the parent company or the holding company. The parent company holds a controlling interest in the subsidiary company, and in cases where a subsidiary is 100% owned by another firm, the subsidiary is referred to as a wholly owned subsidiary.

Non Controlling Interest

Non controlling interest (NCI) is the portion of equity ownership in a subsidiary not attributable to the parent company, who has a controlling interest (greater than 50% but less than 100%) and consolidates the subsidiary's financial results with its own.

ekkarill92 answered 1 year ago
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