Related:
Accounting,
Associate company,
Australia,
Berkshire Hathaway,
Business,
Chaebol,
Citigroup,
Commercial law,
Company (law),
Compaq,
Conglomerate (company),
Consolidation (business),
Control premium,
Corporation,
Corporations Act 2001,
Division (business),
Division (organisation),
Enterprise value,
Equity method,
Good standing,
Goodwill (accounting),
Hewlett Packard,
Holding company,
IBM,
Keiretsu,
Legal fiction,
Limited liability company,
Mergers and acquisitions,
Minority interest,
Parent company,
Railroad,
Regulation,
Rolling stock,
Share (finance),
State-owned enterprise,
Subsidiarity,
Subsidiary,
Tax,
Time Warner,
Wiktionary,
Xerox Corporation,
Zaibatsu,
A subsidiary, in business matters, is an entity that is controlled by a separate higher entity. The controlled entity is called a company, corporation, or limited liability company; and in some cases can be a government or state-owned enterprise, and the controlling entity is called its parent (or the parent company). The reason for this distinction is that a lone company cannot be a subsidiary of any organization; only an entity representing a legal fiction as a separate entity can be a subsidiary. Contrary to popular belief,[by whom?] a parent company does not have to be the larger or "more powerful" entity;[citation needed] it is possible for the parent company to be smaller than a subsidiary,[citation needed] or the parent may be larger than some or all of its subsidiaries (if it has more than one).[citation needed] The parent and the subsidiary do not necessarily have to operate in the same locations, or operate the same businesses, but it is also possible that they could conceivably be competitors in the marketplace. (Hewlett Packard is the parent company of Compaq, but both compete against each other in the sale of desktop computers.) Also, because a parent company and a subsidiary are separate entities, it is entirely possible for one of them to be involved in legal proceedings, bankruptcy, tax delinquency, indictment and/or under investigation, while the other is not.
Accountancy is the art of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management.[1] It is the branch of mathematical science that is useful in discovering the causes of success and failure in business. The principles of accountancy are applied to business entities in three divisions of practical art, named accounting, bookkeeping, and auditing.[2]
An associate company (or associate) in accounting and business valuation is a company in which another company owns a significant portion of voting shares, usually 20–50%. In this case, an owner does not consolidate the associate's financial statements. 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, and dividends from the ownership are reported in the income statement. In Europe, investments into associate companies are called fixed financial assets.
Australia (pronounced /əˈstreɪljə/ ə-STRAYL-yə or /ɒˈstreɪljə/ o-STRAYL-yə,[7] or more formally as /ɔːˈstreɪliə/ aw-STRAY-lee-ə), officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent (the world's smallest),[8][9] the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans.N4 Neighbouring countries include Indonesia, East Timor, and Papua New Guinea to the north, the Solomon Islands, Vanuatu, and New Caledonia to the north-east, and New Zealand to the southeast.Berkshire Hathaway (NYSE: BRKA and NYSE: BRKB) is a conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years, while employing large amounts of capital, and minimal debt.[1] Berkshire Hathaway stock produced a total return of 76% from 2000-2010 versus a negative 24.1% return for the S&P 500[3]
A business (also called a company, enterprise or firm) is a legally recognized organization designed to provide goods and/or services to consumers.[1] Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Notable exceptions include cooperative enterprises and state-owned enterprises. Businesses can also be formed not-for-profit or be state-owned.Chaebol (alternatively Jaebol, Jaebeol; Korean pronunciation: [tɕɛːbəl]) refers to a South Korean form of business conglomerate. They are powerful global multinationals owning numerous international enterprises. The Korean word means "business family" or "monopoly" and is often used the way "conglomerate" is used in English.Citigroup Inc. (branded Citi), is a major American financial services company based in New York, NY. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate Travelers Group on April 7, 1998.[2]