Subsidiary


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Subsidiary

A wholly or partially owned company that is part of a large corporation. A foreign subsidiary is a separately incorporated entity under the host country's law. A subsidiary's financial results are carried on the parent company's books.

Subsidiary

A company that is publicly-traded but has more than half its stock owned by another company, known as the parent company. As long as the parent company owns more than half the stock, it maintains control of the subsidiary, though its other stock is still traded. Some subsidiaries belong to the same industry as the parent company, while others do not, and are part of a diversification effort on the part of the parent company. See also: Wholly owned subsidiary.

subsidiary

A company controlled or owned by another company. For example, the trucking company Overnite Transportation is a wholly owned subsidiary of Union Pacific Corporation. If a subsidiary is wholly owned, all its stock is held by the parent company. Compare holding company, parent company.
References in periodicals archive ?
Romanian law did not take over these definitions of a Romanian company subsidiary, the notion of subsidiary being given up to the companies made up by mother-company which gives the name of the subsidiary.
Internalization advantage factors indicate a variety of benefits that an MNC can acquire after it controls a subsidiary's equity to internalize foreign activities.
Although it might seem otherwise, the subsidiary structure is more about accountability and protection than it is about power.
Subsidiary governance is emerging as one the key topics in the theory and practice of corporate governance, yet very few best practice principles have been developed in this important realm.
Section 208.9 provides that "entire net income" is "total net income from all sources, which shall be presumably the same as the entire taxable income (but not alternative minimum taxable income), which the taxpayer is required to report to the United States Treasury Department." ENI is subject to several adjustments, including that in section 208.9(a)(1), which states, "Entire net income shall not include: (1) income, gains and losses from subsidiary capital." Section 208.9(a)(1) thus requires that capital gains realized on the sale of a subsidiary be subtracted in computing entire net income and capital losses added back to income.
If the transfer of property is from the subsidiary to the parent, it is treated as a deemed distribution under Sec.
In this context, Birkinshaw (1997) has distinguished between the concepts of subsidiary role--the prescribed contributions a subsidiary is expected to make to the MNE--and subsidiary initiatives--the independent strategic decisions of a subsidiary to expand or otherwise alter its role.
MCC hopes to develop wide-ranging businesses in the Chinese market by employing the sales subsidiary as a sales base in China.
* Frictional costs of moving money to and from the subsidiary. The more effort and cost involved, the higher local balances should be kept.
Secondly, the court has ruled that EU treaty rules ban national tax laws levying higher taxes on a local subsidiary owned by a parent in a foreign EU member state than would be demanded from a subsidiary transferring its profits to a local parent.
Under this new system, each BHC is assigned a "C" composite rating, which is based on an evaluation and rating of the BHC's managerial and financial condition and an assessment of future potential risk to its subsidiary depository institution(s).
In the early 1990s, M&S decided to expand into continental Europe and to do so set up, among others, a French subsidiary to operate a retail outlet in Paris.