GENERAL KNOWLEDGE

Detailed explanation-1: -What Is a Subsidiary? In the corporate world, a subsidiary is a company that belongs to another company, which is usually referred to as the parent company or the holding company. The parent holds a controlling interest in the subsidiary company, meaning it has or controls more than half of its stock.

Detailed explanation-2: -A wholly owned subsidiary is a company whose common stock is 100% owned by another company. A company may become a wholly-owned subsidiary through an acquisition. A majority-owned subsidiary is a company whose common stock is 51% to 99% owned by a parent company.

Detailed explanation-3: -The company structure of a subsidiary If the parent simply owns a controlling interest in the subsidiary (50% or more), then the company is a subsidiary. If the parent owns less than 50% of another company, then that company is simply an associate of the parent company and not a subsidiary.

Detailed explanation-4: -The term subsidiary company refers to a separate entity that exists under the umbrella of another corporation, called a parent or holding company. Subsidiary companies typically operate on their own while still benefiting from the resources provided by their parent company.

Detailed explanation-5: -A subsidiary is a company that is owned or controlled by a parent or holding company. Usually, the parent company will own more than 50% of the subsidiary company. This gives the parent organization the controlling share of the subsidiary. In some cases, control can be achieved simply by being the majority shareholder.