konsernselskapers

A konsernselskap, or holding company, is a type of corporation whose primary purpose is to own a controlling interest in other companies. These subsidiary companies are the operating entities, responsible for conducting business activities and generating revenue. The holding company itself typically does not engage in day-to-day operations; its main function is strategic management and financial oversight of its subsidiaries.

The structure of a konsernselskap allows for diversification and risk management. By holding shares in various businesses, the parent company can spread its investments across different industries or markets. This can insulate the holding company from the financial difficulties of any single subsidiary. Furthermore, a holding company can facilitate the acquisition and divestment of businesses more efficiently than a single, integrated corporation.

Consolidated financial statements are a key feature of konsernselskaper. The parent company reports the financial results of all its subsidiaries as if they were a single economic entity. This provides a comprehensive view of the group's overall financial performance and position. Legal and regulatory frameworks often distinguish between the parent company and its subsidiaries, with each entity having its own legal identity and responsibilities. The relationship is primarily one of ownership and control.