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TeachMeFinance.com - explain Operating company historic definition... Operating company -- In the case of a railroad this is the company which owns and actually operates the road, but which company itself is owned, or at least the control of which is owned, by another company ; the latter company would be designated as a controlling company. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.