What is the difference between subsidiary and division?

Definitions

- Referring to a company that is owned or controlled by another larger company. - Describing a secondary or supporting role or function. - Talking about a less important or smaller part of a larger organization.

- Referring to a separate unit or department within a larger organization. - Describing a separation or partition of something into parts or sections. - Talking about a group or team within an organization that has a specific function or focus.

List of Similarities

  • 1Both words refer to a part or component of a larger organization.
  • 2Both can be used to describe a group or team within a company.
  • 3Both can be used to describe a separation or partition of something into parts or sections.

What is the difference?

  • 1Ownership: A subsidiary is owned or controlled by another larger company, while a division is typically a part of the same organization.
  • 2Function: A subsidiary often has a supporting or secondary role, while a division may have a specific function or focus.
  • 3Size: A subsidiary is usually smaller than the parent company, while a division can be any size within the organization.
  • 4Structure: A subsidiary has its own legal and financial structure, while a division is part of the same legal and financial structure as the parent company.
  • 5Hierarchy: A subsidiary may have its own management and leadership structure, while a division is typically managed by the same leadership as the parent company.
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Remember this!

Subsidiary and division are both words used to describe a part or component of a larger organization. However, the difference between them lies in their ownership, function, size, structure, and hierarchy. A subsidiary is a company that is owned or controlled by another larger company and often has a supporting or secondary role. On the other hand, a division is typically a part of the same organization and may have a specific function or focus.

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