Divisions Versus Subsidiaries

      
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		            		rafita
Indonesia
			            
Divisions Versus Subsidiaries

	          		I need some clarification of what is the difference between divisions and subsidiaries. Is there any significant distinction? In the decision making process?
				      
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						            	Sergio Leite
Analyst, Brazil
												
				                Decentralization / Subsidiaries

													OK. A division is an internal organization way. We are dealing with a simple division of labor, responsibilities and authority in a single company with just a single stock control.

Yet subsidiaries represent a more complex concept that involves ownership and the sharing of participation in the capital between some companies, where a holding company maintains the control of the capital upon its subsidiaries. Besides, holding companies usually represent the decision-making centers where the deliberative authority are concentrated, policies, guidelines, operational rules, control systems are settled.
				                
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