subsidiary
//səbˈsɪdiəri//
Translation
subsidiary
Definition
A subsidiary is a company that is owned or controlled by another company, known as the parent company. This relationship often involves the parent holding a majority stake in the subsidiary, allowing it to influence or direct the subsidiary's operations, strategy, and management. Subsidiaries are common in large corporations to manage different brands, markets, or business functions while maintaining legal separation. For example, a parent company might own a subsidiary to enter a new geographic region or handle a specific product line. The subsidiary operates as a separate legal entity, which can limit the parent's liability and provide tax or regulatory advantages.
Example
“The parent company acquired a small tech firm to operate as a subsidiary.”
“Our subsidiary in Germany handles all European sales.”
“The subsidiary reported strong profits this quarter, boosting the overall group performance.”
“She was promoted to CEO of the subsidiary after leading a successful product launch.”
“The subsidiary operates independently but follows the parent company's overall strategy.”
“Many multinational corporations have a subsidiary in each country where they do business.”
“The parent company sold its subsidiary to focus on core operations.”
“The subsidiary's board of directors includes members from the parent company.”
“Investors are evaluating the financial health of the subsidiary before making a decision.”
“The subsidiary was established to handle research and development for the parent company.”
Synonyms