Pronunciation: [sˈʌbsɪdəɹi] (IPA) 
The correct spelling of "subsidary" is "subsidiary" /səbˈsɪdiəri/. The word is derived from the Latin word "subsidium" meaning "support" or "subsidy". In IPA transcription, the first syllable is pronounced as "səb" with the schwa sound, followed by the stressed syllable "sɪdi", and ending with the unstressed syllable "əri". It is important to spell words correctly to ensure clear communication and avoid misunderstandings.
A subsidiary refers to a company that is controlled and owned by another larger company, usually termed as the parent or holding company. The subsidiary operates as a separate legal entity but is under the financial and managerial control of the parent company. The relationship between a subsidiary and its parent company is established through the ownership of a majority or significant portion of the subsidiary's voting shares.
The purpose of creating a subsidiary is often to diversify business interests, expand into new markets, or separate different business activities within a corporate structure. It allows the parent company to exercise control and influence over the subsidiary's strategic decisions, operations, and finances while benefiting from the subsidiary's profits, losses, and assets.
Subsidiaries are subject to the ownership and control of the parent company, with the parent having the authority to appoint directors or executives to manage the subsidiary's affairs. However, subsidiaries typically possess their own distinct legal structure, finances, and accounting systems, enabling them to operate semi-autonomously.
Furthermore, subsidiaries may be established both domestically and internationally, depending on the parent company's goals and market reach. The establishment of subsidiaries can offer various advantages such as tax benefits, risk mitigation, increased market presence, and improved management efficiency.
Overall, a subsidiary is a legally separate company owned and controlled by another company, allowing for strategic expansion, diversification, and central oversight.
The word "subsidiary" comes from the Latin word "subsidiarius" which means "assistance, help, or support". It is derived from the Latin prefix "sub-" meaning "under" and the verb "sidere" meaning "to sit". The combination of these elements suggests the idea of something that provides support or is subordinate to something else.
