Answer:
A parent company is a company that has a controlling interest in another company, giving it control of its operations. Parent companies can be either hands-on or hands-off owners of its subsidiaries, depending on the amount of managerial control given to subsidiary managers, but will always maintain a certain level of active control.
Step-by-step explanation:
A parent company is a single company that has a controlling interest in another company or companies.
Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger.
Parent companies must account for their subsidiaries appropriately on their financial statements and for tax purposes.