WAEC Commerce 2025 Theory — Question 5

Model answer

A holding company is a company that owns a significant share of another company's capital — e.g. Company A is a holding company of Company B if it holds significant shares in B. A subsidiary company is a company that has a parent company; it is more or less an off-shoot of the parent — e.g. Company X is a subsidiary of Company Y if Y funds X's capital.