The two principal advantages of holding companies are (1) the holding company can control a great deal of assets with limited equity and (2) the dividends received by the parent from the subsidiary are not taxed if the parent holds at least 50% of the subsidiary's stock. a) true
b) false

a) true

Explanation:

Holding Companies are Companies that have more that 50% in Voting Rights in another company and those rights gives them control over the subsidiary company.

The advantages of entering in such a transaction is to control a great deal of assets with limited equity and to receive dividends income from subsidiary.The dividends are exempt from taxes accounting to the tax legislation.

you had the wrong answer