definition of the commercial subsidiary and industrial subsidiary?
Solution -
A subsidiary is defined as a company which is controlled by another company, which owns more than 50% of stocks of this company or at times even 100% of stocks where such a subsidiary is classified as a fully owned subsidiary.
Now before diving deep into the definition of commercial and industrial subsidiary we must note that the subsidiaries are put in place in the corporate world to derive specific benefits for the parent company. These benefits are in the form of synergy advantages such as
Commercial Subsidiaries - These are those subsidiaries that are controlled by the parent company for business development purposes. Commercial Subsidiaries are intended to provide an advantage on the marketing aspect of the parent company and at times are opened to implement specific marketing strategies for the parent company. For instance Nike Inc. has a subsidiary in India known as Nike India Private Limited which was established to market the Nike products in India and to assist Nike in implementing their market development strategy.
Industrial Subsidiaries - These are those subsidiaries which are established and controlled by the parent company to provide an advantage on manufacturing and operations. These companies generally conduct some part of operations for the parent company and provide advantages on cost and efficiency. For instance Ramco Industries Group has many subsidiary companies that provide for the raw material to the parent company. This assists in smooth and cost effective operations and provide Ramco Industries with a cost advantage on its competitors due to such optimization upstream.
The volume of commercial and industrial loans made by banks has declined over the past few decades, while the volume of real estate loans has risen. Explain why you think this trend occurred and how it contributed to banks’ difficulties during the financial crisis of 2007-2009.
What do you think Industrial Organizational Psychology is? please provide your current understanding of Industrial Organizational Psychology. not a google definition.
6. Industrial Building, Inc., has two project teams installing virtually identical, four-story commercial buildings for a customer in two separate cities. Both projects have a planned daily cost of 100 and a planned daily earned value of 100 The first 6 days for each team have progressed as follows: Team A: Team B Day Earned Value Earned Value Cost Cost 95 95 98 94 101 102 106 109 6 99 126 118 90 92 94 98 104 112 90 2...
6. Industrial Building, Inc., has two project teams installing virtually identical, four-story commercial buildings for a customer in two separate cities. Both projects have a planned daily cost of 100 and a planned daily earned value of 100 The first 6 days for each team have progressed as follows: Team A: Team B: A: B: Day Earned Value Earned Value Cost Cost 95 95 98 94 0 102 106 109 116 99 126 118 90 92 94 98 104 112...
You work for an electrical contractor headquartered in Kapolei that focuses on commercial and industrial solar projects. The business has about 40 employees, mostly working in sales and installations, with some accounting, warehouse, and executive personnel. The office is relatively small but your customers are fairly large corporations. You have recommended a number of improvements to secure the IT infrastructure in the office, but the CEO doesn't think your company is big enough for hackers to care about. You want to...
1. Which of the following is NOT a common subsidiary ledger? a. Inventory subsidiary ledger b. Accounts payable subsidiary ledger C. Accounts receivable subsidiary ledger d. Cost of goods sold subsidiary ledger
The Large-Scale Industrial Corporation, a large well established company, is about to issue $6,000,000 worth of commercial paper. The paper has a maturity of 9 months (270 days), and commands a price worth 97.5% of par value in the market. The paper will be sold with a face or par value of $100,000. How many commercial papers will be sold? What is the cost of this borrowing to the firm? please answer the problem with the steps and formula....thank you
5.Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsidiary in Greece. Both subsidiaries frequently remit their earnings back to the parent company. The German subsidiary generated a net outflow of E2,000,000 this year, while the Greek subsidiary generated a net inflow of E1,500,000.What is the net inflow or outflow as measured in U.S. dollars this year? The exchange rate for the euro is $1.05
Below is the equity section of the consolidated worksheet between a parent and its subsidiary Subsidiary Parent Accounts Payable 1,083 890 Long-term Debt 2,013 1,262 Common Stock 3,356 1,759 Retained Earnings 5,467 4,677 Here is the separate income and dividends paid during the year Separate Net Income Dividends Declared Parent 9,434 2,201 Subsidiary 2,520 850 After the consolidation entry is prepared the consolidated net income will be $ Below is the equity section of the consolidated worksheet between a parent...
A subsidiary issues bonds. The parent can then acquire the bonds either directly from the subsidiary or from a nonaffiliate that had originally acquired the subsidiary's bonds. a) Discuss the parent's accounting as it relates to the preparation of consolidated financial statements, for their acquisition of the bonds: 1. from the nonaffiliate. 2. directly from the subsidiary. b) Why does it matter who the bonds are acquired from?