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A subsidiary is a business that is wholly or partially owned by another business, sometimes called the parent company or holding company. The parent company owns sufficient voting stock in the subsidiary -- as a rule, at least 50% -- to give it control over the subsidiary's operations and management.
Businesses in a conglomerate are often unrelated and very different from one another in terms of the products or services they offer. The corporation is the parent company and the business enterprises underneath are known as subsidiary companies.usinesses in a conglomerate are often unrelated and very different from one another in terms of the products or services they offer. The corporation is the parent company and the business enterprises underneath are known as subsidiary companies.