What is indirect control?
Understand the Problem
The question is asking for an explanation of the concept of indirect control, likely in a contextual framework such as governance, management, or systems. We will provide a definition and examples of how indirect control operates within these frameworks.
Answer
Indirect control is when a parent unit has control over a sub-unit through intermediary subsidiaries.
Indirect control is when a parent unit controls a sub-unit through one or more subsidiaries, not requiring direct majority ownership.
Answer for screen readers
Indirect control is when a parent unit controls a sub-unit through one or more subsidiaries, not requiring direct majority ownership.
More Information
This type of control often occurs in corporate structures where ownership is spread across multiple layers. It's efficient for wide organizational reach without needing direct intervention.
Tips
People often confuse indirect control with direct ownership, but ownership isn't always necessary for control.
Sources
- Indirect control - unescwa.org
- Indirect control Definition | Law Insider - lawinsider.com
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