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Subsidiary Meaning: Definition, Examples, and Translations

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subsidiary

[sษ™bหˆsษชdiษ™ri ]

Definitions

Context #1 | Noun

business

A company that is controlled by another larger company.

Synonyms

affiliate, branch, division.

Which Synonym Should You Choose?

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Word Description / Examples
subsidiary

Used to describe a company that is controlled by another company (often referred to as a parent company). This term highlights ownership and often a significant degree of control by the parent company.

  • The large conglomerate has multiple subsidiaries worldwide.
  • Our subsidiary in Europe is doing exceptionally well this quarter.
affiliate

Used to describe a company or organization that is connected to a larger entity. The connection can be through partnerships, associations, or ownership. It implies a looser relationship than 'subsidiary'.

  • We partner with several affiliates to distribute our products locally.
  • ABC Inc. is an affiliate of the major global brand XYZ.
branch

Used to describe a regional office or location of a company that is part of a larger organization. It focuses more on the physical presence and geographical spread.

  • The local branch of our bank offers excellent customer service.
  • We opened a new branch in the downtown area last month.
division

Used to describe a distinct section or department within a company, often operating semi-independently but still under the overall control of the main organization. It focuses on functional or operational differences within the company.

  • The marketing division is responsible for all our advertising campaigns.
  • Our technology division has developed a new software application.

Examples of usage

  • The company's main focus is on its core business, while the subsidiary handles other operations.
  • The subsidiary reported a decrease in revenue for the quarter.
  • The parent company owns 75% of the subsidiary.
Context #2 | Adjective

relationship

Less important or secondary compared to something else.

Synonyms

ancillary, secondary, supplementary.

Which Synonym Should You Choose?

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Word Description / Examples
subsidiary

Used to refer to a company that is controlled by another company, often in business and financial contexts.

  • The subsidiary is responsible for managing our operations in Europe
secondary

Describes something that is of lesser importance or rank compared to something else. Often used in education, biology, and discussions about priorities.

  • Her secondary duties include overseeing the junior staff
ancillary

Used to describe something that is supplementary or provides support to the main function or activity.

  • Ancillary services, such as maintenance and logistics, are essential for the smooth operation of the facility
supplementary

Refers to something added to complete or enhance the main thing, often used in academic or formal settings.

  • The supplementary material provided in the textbook helped clarify complex concepts

Examples of usage

  • The subsidiary role of the character added depth to the plot.
  • His opinion was only a subsidiary consideration in the decision-making process.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Business

  • Subsidiaries allow larger corporations to diversify and reduce risk by operating in different markets.
  • They can operate independently but are often branded under the parent company's name to leverage recognition.
  • Many multinationals use subsidiaries to comply with local laws and regulations in different countries.

Finance

  • Investors often look at subsidiaries as a way to evaluate the potential of a parent company due to the financial performance of its smaller units.
  • A subsidiary's losses can potentially minimize the tax burden on the parent company, depending on the jurisdiction's tax laws.

Law

  • Legal definitions of subsidiaries can vary by jurisdiction, particularly regarding liability and control.
  • In case of bankruptcy, creditors might pursue the assets of a subsidiary separately from the parent company.

Pop Culture

  • In movies and books, characters often work for subsidiaries that have a hidden connection to a larger, sometimes villainous, main company.
  • Television shows depicting businesses often create subsidiary characters to highlight the dynamics between larger corporate entities.

Origin of 'subsidiary'

Main points about word origin

  • Originates from the Latin word 'subsidiarius', meaning 'to help' or 'support'.
  • The term evolved in the 17th century to describe companies that provide assistance to larger entities.

The word 'subsidiary' originated in the late 16th century from the Latin word 'subsidiarius', meaning 'helping' or 'subsidizing'. It was first used in the context of assistance or support, eventually evolving to refer to a company controlled by another. The concept of a subsidiary company became widely recognized in the business world as a way for larger corporations to expand their operations and investments.

Word Frequency Rank

With rank #4,681, this word represents useful upper-intermediate vocabulary. Understanding and using it will help you express more complex ideas effectively.