Subsidiary

[suhb-SID-ee-air-ee]

What is the definition of Subsidiary?

A company that is either wholly or partially owned by another corporation, known as the parent company. The parent company holds more than 50% of the voting shares, giving it control over the subsidiary. Subsidiaries can be located in the same or different countries as the parent company, and their financial results are included in the parent company's financial statements.

Using Subsidiary in an Example

A multinational corporation based in the United States owns 75% of the voting shares of a technology firm in Ireland, making the Irish company a subsidiary. The financial outcomes of this subsidiary are integrated into the parent company's consolidated financial statements.

Using Subsidiary in a sentence

During the meeting, the CFO explained how the performance of their subsidiaries abroad significantly impacted the overall revenue growth as reported this quarter.

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