Subsidiary Company for Dummies
noun
pronunciation: səb'sɪdi,ɛri_'kəmpəniWhat does Subsidiary Company really mean?
Hey there! So, let's dive into this concept of a "subsidiary company." I know it may sound like a fancy term, but don't worry, I'll explain it in the simplest way possible, just for you!
Okay, imagine you have a big company. Picture it like a big tree with branches. Each branch is a different part of the company that does specific things. Now, sometimes this big company wants to have even more branches or parts of the company that specialize in something different or new. And that's where the "subsidiary company" comes into play.
A subsidiary company is like a small branch that grows from the big company tree. It's a separate company, but it's owned and controlled by the big company. So, think of it as a baby tree growing under the shade and support of the big tree. The big company, which we call the parent company, usually owns more than half of the subsidiary company's shares, which means they have control over it. Just like how parents have control over their kids, but in a business sense!
Now, let's break it down even more. There are two main types of subsidiary companies: wholly-owned and partially-owned. A wholly-owned subsidiary is when the parent company owns all the shares of the subsidiary. It's like having the big tree as the only support for the small branch. On the other hand, a partially-owned subsidiary is when the parent company owns some, but not all, of the shares of the subsidiary. It's like having the big tree share some of its support with the small branch with another tree nearby.
So, to sum it all up, a subsidiary company is a small branch that grows from a big company. It's a separate company, but the big company owns and controls it. Just like a parent takes care of their child, the parent company takes care of the subsidiary company. And there are two types: wholly-owned, where the parent company owns all the shares, and partially-owned, where the parent company owns some of the shares.
I hope that clears things up for you! If you have any more questions, feel free to ask. Remember, I'm here to help and make sure you understand everything.
Okay, imagine you have a big company. Picture it like a big tree with branches. Each branch is a different part of the company that does specific things. Now, sometimes this big company wants to have even more branches or parts of the company that specialize in something different or new. And that's where the "subsidiary company" comes into play.
A subsidiary company is like a small branch that grows from the big company tree. It's a separate company, but it's owned and controlled by the big company. So, think of it as a baby tree growing under the shade and support of the big tree. The big company, which we call the parent company, usually owns more than half of the subsidiary company's shares, which means they have control over it. Just like how parents have control over their kids, but in a business sense!
Now, let's break it down even more. There are two main types of subsidiary companies: wholly-owned and partially-owned. A wholly-owned subsidiary is when the parent company owns all the shares of the subsidiary. It's like having the big tree as the only support for the small branch. On the other hand, a partially-owned subsidiary is when the parent company owns some, but not all, of the shares of the subsidiary. It's like having the big tree share some of its support with the small branch with another tree nearby.
So, to sum it all up, a subsidiary company is a small branch that grows from a big company. It's a separate company, but the big company owns and controls it. Just like a parent takes care of their child, the parent company takes care of the subsidiary company. And there are two types: wholly-owned, where the parent company owns all the shares, and partially-owned, where the parent company owns some of the shares.
I hope that clears things up for you! If you have any more questions, feel free to ask. Remember, I'm here to help and make sure you understand everything.
Revised and Fact checked by Olivia Brown on 2023-10-28 22:05:24
Subsidiary Company In a sentece
Learn how to use Subsidiary Company inside a sentece
- McDonald's is a well-known fast food restaurant. However, it also has subsidiary companies like McCafe, which focuses on serving coffee and baked goods.
- Nike is a popular athletic shoe brand. They also own subsidiary companies such as Converse and Hurley, which produce different types of shoes and apparel.
- Google is a famous technology company. One of its subsidiary companies is YouTube, a platform for watching and sharing videos.
- Samsung is a leading electronics company. They have subsidiary companies like Samsung Electronics and Samsung Display, which specialize in manufacturing different electronic devices and components.
- Nestle is a multinational food and beverage company. One of their subsidiary companies is Nespresso, which focuses on producing and selling coffee machines and capsules.
Subsidiary Company Synonyms
Words that can be interchanged for the original word in the same context.
Subsidiary Company Hypernyms
Words that are more generic than the original word.