The-definition.com

Definition

Parent company & Subsidiary (affiliated) company

A company that owns more than 50% of the common stock of another entity is known as the patent company.

The entity whose stock the parent company owns is called the subsidiary (affiliated) company. Because of its stock ownership, the parent company has a controlling interest in the subsidiary.

Share it:  Cite

More from this Section

  • Budgeted Balance Sheet
    The budgeted balance sheet is a projection of financial position at the end of the budget ...
  • Long-term investments
    Long-term investments are generally investments stocks and bonds of other companies that ...
  • Organization costs
    Costs incurred in the formation of a corporation are called organization costs. These ...
  • Capital stock
    Capital stock consists of preferred and common stock. Preferred stock appears before common ...
  • Errors of duplication
    Such errors arise when entry in a book or original entry has been made twice ...