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Which of the following is an example of a holding company? a railroad company buys its competitors' companies leaders from different transport companies agree to charge the same prices a company owns stock in several different corporations a paper factory owns a lumber yard and paper mill

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The correct answer is C
palebadgworthy

The correct answer is: " a company owns stock in several different corporations".

A holding is a type of corporation does not provide goods or services, but simply owns stock from other companies in order to constitute a corporate group. It is a manner of reducing risk for investors/owners.

The other definitions provided correspond to the following phenomena:

  • absortion and monopoly: a railroad company buys its competitors'
  • collusive oligopoly: companies leaders from different transport companies agree to charge the same prices
  • vertical integration: a paper factory owns a lumber yard and paper mill

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