As an alternative to demutualizing,Big Mutual Insurance Company reorganized itself into a corporate form that can directly or indirectly own a stock insurance company.This form of organization is called a(n)
A)holding company.
B)shell company.
C)upstream company.
D)downstream company.

Question

Quizplus · Accepted Answer

A holding company is a corporate form that exists to own other companies, either directly or indirectly. This allows Big Mutual Insurance Company to own a stock insurance company without demutualizing, as the holding company can still maintain control over the stock insurance company while retaining its mutual structure. Shell companies, upstream companies, and downstream companies are not applicable in this scenario.

As an Alternative to Demutualizing,Big Mutual Insurance Company Reorganized Itself