When a corporation, called the parent corporation, buys all or the majority of shares in another company, the company becomes a subsidiary of the parent corporation. A parent corporation can also ...

An LLC, or limited liability company, is a hybrid of a corporation and a partnership. It provides personal asset protection like a corporation and is considered a "disregarded entity" by the IRS, ...

Consolidated financial statements combine parent and subsidiary finances for clearer insight. Investors can evaluate influence and returns by checking ownership percentages on balance sheets. Many ...

Bottom Line: When firms want to shed a subsidiary, they must decide whether to spin off or sell the business. New research shows that selling, rather than spinning, may be the more profitable option.