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A first-tier subsidiary is a subsidiary/child company of the ultimate parent company, [note 1] [10] while a second-tier subsidiary is a subsidiary of a first-tier subsidiary: a "grandchild" of the main parent company. [11] Consequently, a third-tier subsidiary is a subsidiary of a second-tier subsidiary—a "great-grandchild" of the main parent ...
Subsidiaries are separate, distinct legal entities for the purposes of taxation, regulation and liability.For this reason, they differ from divisions, which are businesses fully integrated within the main company, and not legally or otherwise distinct from it.
A corporate group is composed of companies. The general rule is that a company is a separate legal entity from its shareholders, that is the shareholder's liability for the subsidiary's debts is limited to the value of the shares, [3] and the shareholders cannot be required to perform the company's obligations.
A corporation may be referred to as an "affiliate" of another when it is related to it but not strictly controlled by it, as with a subsidiary relationship, or when it is desired to avoid the appearance of control. This is sometimes seen with companies that need to avoid restrictive laws (or negative public opinion) on foreign ownership.
Ownership of over 50% creates a subsidiary, with its financial statements being consolidated into the parent's books. Associate value is reported in the balance sheet as an asset, the investor's proportional share of the associate's income is reported in the income statement and dividends from the ownership decrease the value on the balance sheet.
A non-operating subsidiary, in contrast, is a subsidiary that exists on paper, but does not have any assets or employees of its own and therefore cannot function independently as a going business concern. Thus, its only actual business "operations" may consist of its officers entering into contracts with other corporate entities (which may or ...
This category page covers all American companies which operated as the subsidiary of the parent company that are headquartered outside the United States. Subsidiaries are separate, distinct legal entities for the purposes of taxation, regulation and liability.
The deals spurred a series of affiliation realignments between all four U.S. television networks involving individual stations and various broadcasting groups such as those between CBS and Group W (whose corporate parent later bought the network in August 1995), and ABC and the E. W. Scripps Company (which owned three Fox affiliates that ...