Subsidiary

A subsidiary, subsidiary company or daughter company[1][2][3] is a company that is owned or controlled by another company, which is called the parent company, parent, or holding company.[4][5] The subsidiary can be a company, corporation, or limited liability company. In some cases it is a government or state-owned enterprise. In some cases, particularly in the music and book publishing industries, subsidiaries are referred to as imprints.

In the United States railroad industry, an operating subsidiary is a company that is a subsidiary but operates with its own identity, locomotives and rolling stock. In contrast, a non-operating subsidiary would exist on paper only (i.e., stocks, bonds, articles of incorporation) and would use the identity of the parent company.

Subsidiaries are a common feature of business life, and most multinational corporations organize their operations in this way.[6] Examples include holding companies such as Berkshire Hathaway,[7] Leucadia National Corporation, Time Warner, or Citigroup; as well as more focused companies such as IBM or Xerox. 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. Retrieved 2013-09-29. 
  4. ^ http://smallbusiness.chron.com/difference-between-subsidiary-sister-company-35043.html
  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. 
  7. ^ "Links To Berkshire Hathaway Sub. Companies". Berkshirehathaway.com. Retrieved 2013-09-29. 

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