Business fundamentals

4.On the basis of the control
Holding Company: A parent company that owns and controls the management and composition of the Board of Directors of another company (i.e. subsidiary company) is termed as a holding company.
Subsidiary Company: A company whose more than 51% of its total share capital is owned by another company, i.e. a holding company either itself or together with its subsidiaries, as well as the holding company also governs the composition of Board of Directors is called the subsidiary company.
Associate Company: A company in which another company possess a considerable influence over the company, then the latter is called as an associate company. The term considerable influence implies controls a minimum 20% of total share capital, or business decisions, as per an agreement.
1.2.Company Structure
A company structure refers to how a business is organized and has structured its activities to achieve its overall mission.
In other words, a company’s structure represents the way company employees, managers, and leaders are organized allowing the company to effectively manage its human resources.
A Sole Proprietorship
Sole proprietorship is the simplest organizational structure available for businesses, according to Entrepreneur magazine According to the IRS, it is the most common form of business in the U.S. Businesses structured as a sole proprietorship allows the owner(s) to have total control over company operations. Businesses that typically form sole proprietorships are home-based businesses, shop or retail businesses and one-person consulting firms.
Owners of sole proprietor businesses are responsible for their own record keeping and paying the IRS in the form of self-employment taxes. However, this type of business provides no protection for business owners, as they can be held personally responsible for their company's debt and financial obligations.
A partnership is formed when two or more people join, or partner, together to run a business . Each partner has equal share in the net profits and losses of their business. Like a sole proprietor, each partner reports their income on their personal tax return and pays self-employment taxes to the IRS.
They are also personally liable for financial debt and obligations of their company and also the actions of other partners. Although partnerships can be formed through oral agreements and handshakes, written agreements can be the best option in the event of disputes or lawsuits between partners