Define a holding company and a subsidiary company. When can a company be called a subsidiary of another company? Elaborate.

A holding company and a subsidiary company are two distinct types of companies that operate within a corporate structure. A holding company is an entity that owns the stocks of other companies, known as its subsidiaries. The holding company doesn’t engage in the day-to-day operations of these subsidiaries, but rather, it exerts control over them through its ownership.

On the other hand, a subsidiary company is a separate legal entity that is fully owned by a parent company, known as the holding company. The subsidiary operates as a separate business, with its own employees, products or services, and management ________ ___ ______ _______ ____ ______.
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