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HOLDING COMPANY: A company (usually a corporation) that owns enough stock in another corporation to exercise virtually complete control over its management. Holding companies often own controlling interest in several diverse corporations, allowing it to engage in diverse activities (some of which might be risky) while limiting its liability should problems arise. While holding companies exist in most types of industries, then tend to be quite popular in banking. Through a holding company, a bank can essentially take part in other financial markets (selling insurance, underwriting securities, or acting as a broker) that are beyond the legal authority of the bank itself.

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PROPRIETORS' INCOME

The official factor payment item in the National Income and Product Accounts maintained by the Bureau of Economics Analysis measuring the combined payments for all four factors of production used in owner-operated business firms. Specifically, proprietors' income is the excess of revenue over explicit production cost of owner-operated businesses and includes payments for labor, capital, land, and entrepreneurship. This is one of five official factor payments making up national income. The other four are compensation of employees, rental income of persons, net interest, and corporate profits. Proprietors' income is usually less than 10 percent of national income, typically in the 7 to 10 percent range.

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Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
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