A parent company is one that owns a controlling or majority stake in another company, giving it authority over the subsidiary's operations. Parent companies can be actively involved in the management of their subsidiaries or take a hands-off approach.

A parent company is a corporation that owns enough voting stock in another company, known as a subsidiary, to control its management and operations. Typically, this control is established by owning more than 50% of the subsidiary's shares. The parent company can either operate its own business or focus on managing its subsidiaries. This structure allows the parent company to benefit from the subsidiary's profits while potentially limiting its liability. The relationship can range from full ownership to partial control, where the parent still influences major decisions. Parent companies often establish subsidiaries to diversify their business interests, enter new markets, or manage risk more effectively, allowing for a more flexible and strategic corporate structure.