parent company

(noun)

An entity that owns or controls another entity.

Related Terms

Examples of parent company in the following topics:

  • Reporting for a Combined Entity

    • The controlling entity is called its parent company, parent, or holding company.
    • In contrast, a non-operating subsidiary would exist on paper only (i.e. stocks, bonds, articles of incorporation) and would use the identity and rolling stock of the parent company.
    • In this type of relationship the controlling company is the parent and the controlled company is the subsidiary.
    • The parent company needs to issue consolidated financial statements at the end of the year to reflect this relationship.
    • During the year, the parent company can use the equity or the cost method to account for its investment in the subsidiary.

  • Divisional Structure

    • In this form, one parent company owns subsidiary companies, each of which uses its brand and name.
    • This business structure is typically found in companies that operate worldwide—for example, Virgin Group is the parent company of Virgin Mobile and Virgin Records.
    • Generally speaking, divisions work best for companies with wide variance in product offerings or regions of geographic operation.
    • The divisional structure can be useful because it affords the company greater operational flexibility.
    • In the multidivisional structure, subsidiaries benefit from the use of the brand and capital of the parent company.

  • Being Aware of Off-Balance-Sheet Financing

    • However, the primary distinction between on and off-balance sheet items is whether or not the company owns, or is legally responsible for the debt.
    • A parent company may not be required to consolidate a subsidiary into its financial statements for reporting purposes; however the parent company may be obligated to pay the unconsolidated subsidiaries liabilities.
    • For example, if a company defaults on the rental payments required by an operating lease, the lessor could repossess the assets or take legal action, either of which could be detrimental to the success of the company.

  • Types of Investments: Dependence on Ownership Share

    • Its financial statements consolidate into the parent's financial statements.
    • A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock.
    • The subsidiary can be a company, corporation, or limited liability company.
    • The controlling entity is called its parent company, parent, or holding company.
    • In contrast, a non-operating subsidiary would exist on paper only (i.e. stocks, bonds, articles of incorporation) and would use the identity and rolling stock of the parent company.

  • Licensing

    • Licensing is a business arrangement in which one company gives another company permission to manufacture its product for a specified payment.
    • As in this mode of entry the transference of knowledge between the parental company and the licensee is strongly present, the decision of making an international license agreement depend on the respect the host government shows for intellectual property and on the ability of the licensor to choose the right partners and avoid having them compete in each other's market.
    • This is highly attractive for companies that are new in international business.
    • The foreign partner also can become a competitor by selling its production in places where the parental company has a presence
    • The Batman character has been licensed to many companies, such as Lego.

  • The MKO

    • (For example, who is more likely to know more about the newest teen-age music groups, the "raddest" skateboarding skills, how to win at the most recent Nintendo game, or how to correctly perform the newest dance craze-a child or his parents?!
    • Some companies, to support employees in their learning process, are now using electronic performance support systems.Electronic tutors have also been used in educational settings to facilitate and guide students through the learning process.The key to MKOs is that they must have (or be programmed with) more knowledge about the topic being learned than the learner does.
    • She asks first her parents, followed by one of her friends.She then decides to ask her teacher, and then use the computer as a resource.Using the steps she gathered from others she is able to figure out how to bake the cookies.Concept and Creation developed by Yun-Shuang Chang, Hiliary Johnson, and Yi-Wen Tan (2005).
    • She asks first her parents, followed by one of her friends.

  • Childcare

    • Google was ranked number 1 in the Fortune 100 Best Companies to Work For.
    • Parents Have the Right To Take Unpaid Leave Related to Childcare
    • Care for immediate family members (spouse, child, or parent) with a serious health condition
    • Companies offer such these benefits in order to create a culture for their employees, which have the ability to promote social interaction, make life easier for working parents, or improve employees' quality of life.
    • For example, a single parent has a different work-life balance need than someone without children.

  • Influence of Parenting Style on Child Development

    • There are four main parenting styles that most parents fall into: authoritative, authoritarian, permissive, and uninvolved/neglectful.
    • Parenting style refers to the way in which parents choose to raise their children.
    • In her research, Diana Baumrind (1966) found what she considered to be the two basic elements that help shape successful parenting: parental responsiveness and parental demandingness.
    • Through her studies, Baumrind identified three initial parenting styles: authoritative parenting, authoritarian parenting, and permissive parenting.
    • Neglectful parents may look to their children for support and guidance, and these children often end up "parenting their parents."

  • Parenthood

    • Parenting is usually carried out by the biological parents of the child in question, although governments and society take a role as well.
    • An uninvolved parenting style is when parents are often emotionally absent and sometimes even physically absent.
    • Helicopter Parenting: over-parenting; parents are constantly involving themselves, interrupting the child's ability to function on their own
    • Strict Parenting: focused on strict discipline; demanding, with high expectations from the parents
    • Parenting is a lifelong process.

  • Voluntary, Involuntary, and Trust Associations

    • Here, the sanction is imposed but not threatened, and the polluting companies, for example, have no desire to manipulate the actions of others.
    • If the magnitude of the sanction is great enough to be perceived, then an association is created between the company and the people breathing the air and that association is involuntary.
    • The most familiar example is the association between parents and children in the nuclear family.
    • Children, especially when very young, are in no position to give or to withhold consent to associate with their parents.
    • Although it is a trust association between the parents (jointly) and their children, it is a voluntary association between husband and wife.