Subsidiary

A subsidiary, subsidiary company or daughter company[1][2][3] is a company owned or controlled by another company, which is called the parent company or holding company.[4][5] Two or more subsidiaries that either belong to the same parent company or having a same management being substantially controlled by same entity/group are called sister companies. Sister Concern is not a legal term and it is not necessary for owners of the company to same in sister concer company.

The subsidiary can be a company (usually with limited liability) and may be a government- or state-owned enterprise. They are a common feature of modern business life, and most multinational corporations organize their operations in this way.[6] Examples of holding companies are Berkshire Hathaway,[7] Jefferies Financial Group, The Walt Disney Company, Warner Bros. Discovery, or Citigroup; as well as more focused companies such as IBM, Xerox, and Microsoft. These, and others, organize their businesses into national and functional subsidiaries, often with multiple levels of subsidiaries.

  1. ^ "daughter company = subsidiary: a company that is completely or partly owned by another company" Longman Business English Dictionary
  2. ^ Investopedia: "A subsidiary company is sometimes referred to as a daughter company."
  3. ^ "Daughter Company Definition from Financial Times Lexicon". Lexicon.ft.com. Archived from the original on 2016-06-25. Retrieved 2013-09-29.
  4. ^ "What Is the Difference Between a Subsidiary & a Sister Company?".
  5. ^ "Subsidiary - Definition and More from the Free Merriam-Webster Dictionary". Merriam-webster.com. Retrieved 2015-01-15.
  6. ^ Drucker, Peter F. (September–October 1997). "The Global Economy and the Nation-State". Foreign Affairs. Council on Foreign Relations. 76 (5): 159–171. doi:10.2307/20048206. JSTOR 20048206.
  7. ^ "Links To Berkshire Hathaway Sub. Companies". Berkshirehathaway.com. Retrieved 2013-09-29.

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