Definition
A subsidiary is a company owned or controlled by another company, known as the parent company.Key Characteristics
It operates as a separate legal entity, but the parent company holds a majority stake, typically over 50% of its voting shares.Relationship with Parent Company
The parent company influences the subsidiary’s operations, strategic decisions, and management, often benefiting from its assets and profits.Common Examples
Many large corporations structure their diverse businesses through subsidiaries for operational efficiency and specialized focus.Author
