171k views
3 votes
Which of the following is an example of a holding company? a railroad company buys its competitors' companies leaders from different transport companies agree to charge the same prices a company owns stock in several different corporations a paper factory owns a lumber yard and paper mill

2 Answers

4 votes
The correct answer is C
User David Holm
by
8.1k points
6 votes

The correct answer is: " a company owns stock in several different corporations".

A holding is a type of corporation does not provide goods or services, but simply owns stock from other companies in order to constitute a corporate group. It is a manner of reducing risk for investors/owners.

The other definitions provided correspond to the following phenomena:

  • absortion and monopoly: a railroad company buys its competitors'
  • collusive oligopoly: companies leaders from different transport companies agree to charge the same prices
  • vertical integration: a paper factory owns a lumber yard and paper mill
User Drubio
by
8.3k points

No related questions found