subsidiary

Examples of subsidiary in the following topics:

• Cluster Structure

  • An organization has a cluster structure when it is composed of numerous, relatively independent business divisions and subsidiaries.
  • An organization has a cluster structure when it is composed of numerous, relatively independent business divisions and subsidiaries.
  • A business division may include one or many subsidiaries.
  • Subsidiaries are separate, distinct legal entities for the purposes of taxation, regulation, and liability.
  • A good example that can differentiate divisions and subsidiaries would be Google.

• Structure of Corporations

  • In a large organization, various parts of the business may be run by different subsidiaries, and a business division may include one or many subsidiaries.
  • Each subsidiary is a separate legal entity owned by the primary business or by another subsidiary in the hierarchy.
  • However, Compaq (a part of HP since 2002) operates as a subsidiary, using the Compaq brand name.
  • However, the YouTube video service is a subsidiary of Google because it remains operated as YouTube, LLC -- a separate business entity even though it is owned by Google.
  • Hewlett Packard is an example of a corporation with multiple divisions and subsidiaries.

• Joint ventures and direct investment

  • Thus, they will invest in wholly owned subsidiaries.
  • By establishing overseas subsidiaries, a multinational organization can compete more aggressively because it is "in" the marketplace.
  • However, subsidiaries require more investment as the subsidiary is responsible for all marketing activities in a foreign country.
  • The subsidiary strategy requires complete understanding of business conditions, customs, markets, labor, and other foreign market factors.

• Ledgers

  • Most organizations operate with two types of ledgers, the General Ledger and one or more subsidiary ledgers.
  • For the sake of convenience, we keep a subsidiary ledger of individual accounts receivable as illustrated in Exhibit 39 below.
  • The Accounts Receivable Subsidiary Ledger has one page for each customer who has earned the right to be extended credit, and is expected pay off their outstanding balance each month.
  • The sum of the customer balances in the Accounts Receivable Subsidiary Ledger must equal the Accounts Receivable balance in the company's General Ledger.
  • Similar subsidiary ledgers are created any time there is a sufficient number of detail accounts to warrant it.

• The political/legal environment

  • Most firms probably prefer to engage in the export business rather than invest considerable sums of money in investments in foreign subsidiaries.

• Mergers and Acquisitions (M&As)

  • Mobil became a wholly owned subsidiary of Exxon.

• Introduction to Fundamentals

  • Twenty years ago, the DuPont corporation decided to transition from a progressive focus on internal safety and environmental regulations at the company's various factories, to a more holistic approach that could be fully integrated into the business models of its numerous branches and subsidiaries.
  • Further sustainability-based activities at other subsidiaries generated over $1.6 billion in revenue; particularly from products that help customers (or the final consumer) reduce their energy use and greenhouse gas emissions.

• Banking Crises and Centralized Reserve Enforcements

  • The Federal Reserve supervises certain entities and has the statutory authority to take formal enforcement actions against them, including state member banks, bank holding companies, nonbank subsidiaries of bank holding companies, branches and agencies of foreign banking organizations operating in the United States and their parent banks, and officers, directors, employees, and certain other categories of individuals associated with the above banks, companies, and organizations.

• Chapter Summary

  • A Candy Store Company with subsidiaries in New York and other large cities in US was interested in opening a store in Monterrey, Mexico.
  • The New York subsidiary is located in one of the most visited areas of Manhattan.

• Introduction to Resource Extension Part 2

  • Not to be outdone, DuPont has developed a similar carpet-leasing program to enhance its carpet manufacturing subsidiary.