Subsidiary

A '''subsidiary''', '''subsidiary company''', or '''daughter company'''"daughter company = subsidiary: a company that is completely or partly owned by another company" Longman Business English Dictionary{{cite web|url=http://lexicon.ft.com/Term?term=daughter-company|title=Daughter Company Definition |publisher=Financial Times Lexicon |access-date=2013-09-29|archive-url=https://web.archive.org/web/20160625172156/http://lexicon.ft.com/Term?term=daughter-company|archive-date=2016-06-25|url-status=dead}} is a [[company (law)|company]] completely or partially owned or controlled by another company, called the [[Holding company#Parent company|parent company]] or [[holding company]], which has legal and financial control over the subsidiary company.{{cite web|url=http://smallbusiness.chron.com/difference-between-subsidiary-sister-company-35043.html |website=Small Business - Chron |first1=Alex |last1=Burke |date=October 26, 2018 |title=What Is the Difference Between a Subsidiary & a Sister Company?|access-date=2015-05-20|archive-date=2019-12-21|archive-url=https://web.archive.org/web/20191221111306/https://smallbusiness.chron.com/difference-between-subsidiary-sister-company-35043.html|url-status=live}}{{cite web|url=http://www.merriam-webster.com/dictionary/subsidiary|title=Subsidiary Definition & Meaning |publisher=Merriam-Webster Dictionary |access-date=2015-01-15|archive-date=2016-08-20|archive-url=https://web.archive.org/web/20160820151745/http://www.merriam-webster.com/dictionary/subsidiary|url-status=live}} Unlike regional [[Branch office|branches]] or [[Division (business)|divisions]], subsidiaries are considered to be distinct entities from their parent companies; they are required to follow the laws of where they are incorporated, and they maintain their own executive leadership. Two or more subsidiaries primarily controlled by the same entity/group are considered to be '''sister companies''' of each other.

A '''subsidiary''', '''subsidiary company''', or '''daughter company'''"daughter company = subsidiary: a company that is completely or partly owned by another company" Longman Business English Dictionary{{cite web|url=http://lexicon.ft.com/Term?term=daughter-company|title=Daughter Company Definition |publisher=Financial Times Lexicon |access-date=2013-09-29|archive-url=https://web.archive.org/web/20160625172156/http://lexicon.ft.com/Term?term=daughter-company|archive-date=2016-06-25|url-status=dead}} is a [[company (law)|company]] completely or partially owned or controlled by another company, called the [[Holding company#Parent company|parent company]] or [[holding company]], which has legal and financial control over the subsidiary company.{{cite web|url=http://smallbusiness.chron.com/difference-between-subsidiary-sister-company-35043.html |website=Small Business - Chron |first1=Alex |last1=Burke |date=October 26, 2018 |title=What Is the Difference Between a Subsidiary & a Sister Company?|access-date=2015-05-20|archive-date=2019-12-21|archive-url=https://web.archive.org/web/20191221111306/https://smallbusiness.chron.com/difference-between-subsidiary-sister-company-35043.html|url-status=live}}{{cite web|url=http://www.merriam-webster.com/dictionary/subsidiary|title=Subsidiary Definition & Meaning |publisher=Merriam-Webster Dictionary |access-date=2015-01-15|archive-date=2016-08-20|archive-url=https://web.archive.org/web/20160820151745/http://www.merriam-webster.com/dictionary/subsidiary|url-status=live}} Unlike regional [[Branch office|branches]] or [[Division (business)|divisions]], subsidiaries are considered to be distinct entities from their parent companies; they are required to follow the laws of where they are incorporated, and they maintain their own executive leadership. Two or more subsidiaries primarily controlled by the same entity/group are considered to be '''sister companies''' of each other.

Subsidiaries are a common feature of modern business, and most [[multinational corporation]]s organize their operations via the creation and purchase of subsidiary companies.{{cite journal|title=The Global Economy and the Nation-State|last=Drucker|first=Peter F.|date=September–October 1997|publisher=Council on Foreign Relations|journal=Foreign Affairs|volume=76|issue=5|pages=159–171|doi=10.2307/20048206|jstor=20048206|url=https://www.foreignaffairs.com/articles/1997-09-01/global-economy-and-nation-state |url-access=subscription |access-date=2016-10-14|archive-date=2019-10-31|archive-url=https://web.archive.org/web/20191031145717/https://www.foreignaffairs.com/articles/1997-09-01/global-economy-and-nation-state|url-status=live}} Examples of holding companies are [[Berkshire Hathaway]],{{cite web|url=http://www.berkshirehathaway.com/subs/sublinks.html|title=Links To Berkshire Hathaway Sub. Companies|publisher=Berkshire Hathaway Inc.|access-date=2013-09-29|archive-date=2020-04-15|archive-url=https://web.archive.org/web/20200415054247/https://www.berkshirehathaway.com/subs/sublinks.html|url-status=live}} [[Jefferies Financial Group]], [[The Walt Disney Company]], [[Warner Bros. Discovery]], and [[Citigroup]], which have subsidiaries involved in many different [[Industry (economics)|fields]]. More focused companies include [[IBM]], [[Xerox]], and [[Microsoft]]; they and their subsidiaries primarily operate within the [[Technology company|tech sector]]. These, and others, organize their businesses into national and functional subsidiaries, often with multiple levels of subsidiaries.@ramjiblock-v9i.

Subsidiaries are a common feature of modern business, and most [[multinational corporation]]s organize their operations via the creation and purchase of subsidiary companies.{{cite journal|title=The Global Economy and the Nation-State|last=Drucker|first=Peter F.|date=September–October 1997|publisher=Council on Foreign Relations|journal=Foreign Affairs|volume=76|issue=5|pages=159–171|doi=10.2307/20048206|jstor=20048206|url=https://www.foreignaffairs.com/articles/1997-09-01/global-economy-and-nation-state |url-access=subscription |access-date=2016-10-14|archive-date=2019-10-31|archive-url=https://web.archive.org/web/20191031145717/https://www.foreignaffairs.com/articles/1997-09-01/global-economy-and-nation-state|url-status=live}} Examples of holding companies are [[Berkshire Hathaway]],{{cite web|url=http://www.berkshirehathaway.com/subs/sublinks.html|title=Links To Berkshire Hathaway Sub. Companies|publisher=Berkshire Hathaway Inc.|access-date=2013-09-29|archive-date=2020-04-15|archive-url=https://web.archive.org/web/20200415054247/https://www.berkshirehathaway.com/subs/sublinks.html|url-status=live}} [[Jefferies Financial Group]], [[The Walt Disney Company]], [[Warner Bros. Discovery]], and [[Citigroup]], which have subsidiaries involved in many different [[Industry (economics)|fields]]. More focused companies include [[IBM]], [[Xerox]], and [[Microsoft]]; they and their subsidiaries primarily operate within the [[Technology company|tech sector]]. These, and others, organize their businesses into national and functional subsidiaries, often with multiple levels of subsidiaries.

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