subsidiary
A subsidiary is an entity (e.g., a corporation ) in which another entity (known as the parent or holding company ) has a controlling share . Although the subsidiary operates as a separate legal entity, the parent company can influence its policies , management, and operations. Subsidiaries are often established to manage specific business operations, enter new markets, or mitigate risks associated with different lines of business.
[Last reviewed in June of 2024 by the Wex Definitions Team ]
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