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Difference between parent company and subsidiary company

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What differentiates a parent company from a subsidiary company? What are the relationships between the two? How does that affect reporting?

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The response addresses the queries posted in 543 words with references.

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The response addresses the queries posted in 543 words with references.

//The parent company and the subsidiary company are very much an integral part of a big organization. Through this paper, we will learn about the differences between a parent and a subsidiary company. Along with it, we will learn about the relationship between both of them and how their relationship affect reporting //.

A parent company is said to be a company that holds majority shares of a company, and so has the power to run its subsidiary companies. A parent company usually acts as a vehicle that controls the activities of its subsidiary companies and so is also known as a holding company. The parent company also possesses the power to enjoy the profits' earned by its subsidiary company and also has the liability to pay for its losses. On the other hand, a subsidiary company is a ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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