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Legal paperwork ,can be lengthy and expensive

Controlling issue when a subsidiary is partially owned by another outside organization

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15y ago

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What does subsidiary mean?

Subsidiary means: 1. a.) furnishing aid or support (ex: subsidiary details) 1. b.) of secondary importance (ex: subsidiary stream) 2.) of, relating to, or constituting a subsidy (ex: a subsidiary payment to an ally)


What are the disadvantages to becoming a subsidiary as opposed to starting your own company?

Becoming a subsidiary can limit your autonomy, as decisions may be heavily influenced or dictated by the parent company, potentially stifling innovation and flexibility. Additionally, financial resources and strategic directions may prioritize the parent company's interests over those of the subsidiary. This relationship can also lead to a lack of brand identity, as the subsidiary may be overshadowed by the parent company's reputation and market presence. Lastly, profit-sharing arrangements may reduce the financial benefits compared to fully owning and operating an independent company.


What do you call a company that owns another company?

A company that owns another is a Parent Company, while the one that is owned by another is a Subsidiary. The Subsidiary may be fully owned or partly owned. To qualify as a Subsidiary, the Parent must hold at least 25% of the shares of the Subsidiary.


Can a subsidiary own shares in its holding company?

If a subsidiary own shares in holding company that would be considered as treasury.


What determines a wholly owned subsidiary?

A wholly owned subsidiary can be owned by a parent company. When a company is owned by a parent company 100 percent, a wholly owned subsidiary can be established to retain complete control and ownership

Related Questions

What are the disadvantages of using subsidiary ledger?

time consuming


What are the advantages and disadvantages of subsidiary books?

Advantages of subsidiary books is easy to understand.we can maintain all transactions individually (cash,credit,sales,purchases).help to take financial business decisions for future.


What are the advantages and disadvantages to becoming a subsidiary as opposed to starting your own company?

One of the advantages if being subsidiary is that you dont incur the start up costs which include the licences which can be very expensive.Secondly it becomes easier to operate as a subsisdiay because the holding company a name already in the market this therefore means that the subsidiary will not not incur marketing costs.


What is a subsidiary account?

A subsidiary account is an account that is found in the subsidiary ledger. It is used to summarize the control account.


What is another word for subsidiary?

What is another word for subsidiary?


Which company is a subsidiary of Renault?

Nissan is a subsidiary of Renault.


What does subsidiary mean?

Subsidiary means: 1. a.) furnishing aid or support (ex: subsidiary details) 1. b.) of secondary importance (ex: subsidiary stream) 2.) of, relating to, or constituting a subsidy (ex: a subsidiary payment to an ally)


What is the plural form of subsidiary?

Subsidiaries is the plural form of subsidiary.


What is the plural forms subsidiary?

Subsidiaries is the plural form of subsidiary.


What the plural for subsidiary?

The plurals form for the noun subsidiary is subsidiaries.


What are the disadvantages to becoming a subsidiary as opposed to starting your own company?

Becoming a subsidiary can limit your autonomy, as decisions may be heavily influenced or dictated by the parent company, potentially stifling innovation and flexibility. Additionally, financial resources and strategic directions may prioritize the parent company's interests over those of the subsidiary. This relationship can also lead to a lack of brand identity, as the subsidiary may be overshadowed by the parent company's reputation and market presence. Lastly, profit-sharing arrangements may reduce the financial benefits compared to fully owning and operating an independent company.


What is an ultimate parent company?

An ultimate parent company considered as a parent company of a subsidiary entity, and the subsidiary entity has its subsidiary entity.