operating unit

Operating Unit

A subsidiary that engages in business with other parties. That is, an operating unit has its own assets and liabilities and functions as if it were an independent company; the only difference is that it is owned by another company. An operating unit is useful for the profit it can produce. It contrasts with a nonoperating unit.

operating unit

A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon Capital Cities/ABC became an operating unit of Disney. A decade earlier Capital Cities had acquired ABC. Compare nonoperating unit.
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References in periodicals archive ?
Reserve Bank had invited applications for authorisation/approval to function as Operating Unit from non-banks/banks.
India : RBI grants in-principle approval to NPCI to function as the central unit for Bharat Bill Payment Systems (BBPS)
The total value of new claims for an operating unit is computed as a percentage of the new claims value of all operating units.
Share and share alike: corporations can create savings incentives by the way they allocate the cost of risk internally. (Property/Casualty: Risk Management)
Agreement on standards for clinical practice", managed care contracting, financial accounting, and information systems implementation may be developed, should be developed, in the operating unit.
Factors in successful move to organized care systems
Financial programs varied from one operating unit to another, and the company's chart of accounts began to be characterized by a conglomerate of inconsistent approaches.
DEC's decentralized financial system puts strategy above controls

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