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What is a subsidiary company?

The subsidiary can be a company (usually with limited liability) and may be a government-owned or state-owned enterprise. They are a common feature of modern business life, and most multinational corporations organize their operations in this way.

What is the difference between a parent company and a subsidiary?

A company that is majority-owned by another company is a subsidiary A subsidiary company is owned by another, larger company, commonly called the parent or holding company. Parent companies own majority stakes in their subsidiaries. A subsidiary may operate in a completely different industry than the parent company, or a similar one.

What is the difference between a subsidiary and a sister company?

The difference between a subsidiary and a sister company lies in their relationship to the parent company and to each other. By definition, parent companies own one or more separate corporations, known as subsidiaries. Sister companies are subsidiaries that are related because they're owned by the same parent company.

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