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Financial Terms | |
Parent company |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of Parent companyParent companyA company that retains control over one or more other companies.
Related Terms:ConsolidationA summarization of the financial statements of a parent company and expatriatea parent company or third-country national assigned Foreign currency translationThe process of restating foreign currency accounts of subsidiaries into the RecourseTerm describing a type of loan. If a loan is with recourse, the lender has a general claim against the Blue-chip companyLarge and creditworthy company. Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another company etc. company cost of capitalExpected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations. ![]() Company-specific riskRelated: Unsystematic risk Companyspecific RiskSee asset-specific risk Cost company arrangementArrangement whereby the shareholders of a project receive output free of Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Finance Companycompany engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. Holding companyA corporation that owns enough voting stock in another firm to control management and Insurance CompanyA firm licensed to sell insurance to the public. Intercompany loanLoan made by one unit of a corporation to another unit of the same corporation. Intercompany transactionTransaction carried out between two units of the same corporation. limited liability companyan organizational form that is a hybrid of the corporate and partnership organizational service companyan individual or firm engaged in a high or moderate degree of conversion that results in service output Subsidiary companyA company that is controlled by another company through ownership Trust CompanyOrganization usually combined with a commercial bank, which is engaged as a trustee for individuals or businesses in the administration of Trust funds, estates, custodial arrangements, stock transfer and registration, and other related services. BeneficiaryThis is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario. Creditor Proof ProtectionThe creditor proof status of such things as life insurance, non-registered life insurance investments, life insurance RRSPs and life insurance RRIFs make these attractive products for high net worth individuals, professionals and business owners who may have creditor concerns. Under most circumstances the creditor proof rules of the different provincial insurance acts take priority over the federal bankruptcy rules. Reporting currencyThe currency in which the parent firm prepares its own financial statements; that is, U.S. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |