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Subsidiaries are separate, distinct Legal entities for the purposes of Tax ation and Regulation . For this reason, they are distinct from '' Divisions '', which are entities fully integrated within the main company, and not legally or otherwise distinct from it. An operating subsidiary is a business term frequently used within the United States Railroad industry. In the case of a railroad, it refers to a company that is a Subsidiary but operates with its own identity, locomotives and Rolling Stock . In contrast, a non-operating subsidiary would exist on paper only (i.e. stocks, bonds, articles of incorporation) and would use the identity and rolling stock of the Parent Company . SEE ALSO
Business models which feature elements similar to subsidiaries |
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