Question: what are the advantages and disadvantages of a holding company?
Answer: Ease of formation. It is quite easy to form a holding company. ... 
Large capital. The financial resources of the holding and subsidiary companies can be pooled together. ... 
Avoidance of competition. ... 
Economies of large scale operations. ... 
Secrecy maintained. ... 
Risks avoided. ... 
Over capitalization. ... 
Misuse of power.