A subsidiary company is a company controlled or owned by another company, called the parent company. This relationship differs from a merger, as a subsidiary can be created rather than purchased. Forming a subsidiary can be beneficial for multinational corporations wanting to work within specific legal parameters. In legal terms, a company is a group […]
The general ledger is a company’s main book of accounts, while the subsidiary ledger is a subaccount of a general ledger account that provides details for one of those line items. Subledgers and general ledgers have a dependent relationship, but the difference between them lies in the way they are used. All businesses must maintain […]
Affiliated companies have an established connection, including subsidiaries where one company holds a minority interest in another, and businesses affiliated with the same industry that share resources for mutual benefit. Examples include joint marketing campaigns, sharing assets, and cross-promotion agreements. Affiliated companies are two business operations that have some sort of established and ongoing connection […]
