Question

Although the term "trust" came to be a general term for any big business, there were legal differences between a formal "trust" and a "holding company." Explain the differences. What were the advantages of the latter?

Answer 1

Step-by-step explanation:

Trust became a concept for any significant economic combination. Yet in fact, the faith was a different kind of organisation. Under the trust contract, owners in individual businesses converted their stocks to a small number of fiduciaries in return for stocks in the trust on its own.

Proprietors of trust certificates sometimes have no effective control over decision-making of fiduciaries but treasurers could only get a few companies because it would have direct control over several. A new category of takeover has arisen, which has modified its legislation to allow corporations to acquire other businesses. The trust and subsequent acquisition of firms were too much permitted.

1% of US firms could dominate 33% of revenue by the end of the 19th century. An economy structure emerged and provided very few people with huge control. A structure of organisation has been developed.