9. 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 2005, Starbucks Coffee Co. and Jim Beam Brands Co. together launched Starbucks cream liqueur. Starbucks is one of the world's largest retailers, roasters, and brands of specialty coffee. Jim Beam Brands Co. is an operating company of Jim Beam Brands Worldwide Inc., which is controlled by Fortune Brands Inc. Based on the information given in the case, which of the following statements is true? Fortune Brands Inc. is the parent company of Jim Beam Brands Co. Jim Beam Brands Co. 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 the common stakeholder for both See's Candies and Fruit of the Loom, Fruit of the Loom is legally responsible for See's Candies' performance. False True