8. Holding companies Aa Aa If Company A owns a certain percentage of shares of Company B such that the ownership allows Company A to exercise control over Company B, Company A is said to be the holding company of Company B Consider the following case: In 1996, Starbucks (based in Seattle, WA) and PepsiCo (based in Purchase, NY) created a popular coffee-flavored drink called Frappuccino. This team effort helped Starbucks enter the bottled-beverage market and allowed PepsiCo to create an innovative product that appealed to coffee drinkers. Based on the information given in the case, which of the following statements is true? Starbucks and PepsiCo entered into a strategic alliance PepsiCo is a holding company of Starbucks. Berkshire Hathaway is one of the largest holding companies in the United States. Some of Berkshire Hathaway's holdings include GEICO Insurance Agency Inc., See's Candies, Fruit of the Loom, Flight Safety International and McLane Company. True or False: Because Berkshire Hathaway is a holding company of McLane Company, Berkshire's chairman, Warren Buffet, could influence the management of McLane Company as a key stakeholder O False True