Listen to a Business English Dialogue about Wholly owned subsidiary subsidiary
Billy: Hi Emery, do you know what a wholly owned subsidiary is?
Emery: No, what does it mean?
Billy: A wholly owned subsidiary is a company that is completely owned and controlled by another company, known as the parent company.
Emery: Oh, so it’s like one company owning another company entirely?
Billy: Exactly. The parent company has full ownership and can make all strategic and operational decisions for the subsidiary.
Emery: I see. Are there any advantages to having a wholly owned subsidiary?
Billy: Yes, having a wholly owned subsidiary can provide the parent company with greater control over its operations, access to new markets, and opportunities for synergies between the parent and subsidiary.
Emery: That makes sense. So, how does a wholly owned subsidiary differ from a regular subsidiary?
Billy: Unlike a regular subsidiary where the parent company may only own a majority stake, in a wholly owned subsidiary, the parent company owns 100% of the subsidiary’s shares.
Emery: I understand. So, what are some examples of wholly owned subsidiaries?
Billy: Examples include Google LLC being a wholly owned subsidiary of Alphabet Inc., and Instagram being a wholly owned subsidiary of Facebook, Inc.
Emery: Thanks for explaining, Billy. Wholly owned subsidiaries seem like an important aspect of corporate structure.
Billy: No problem, Emery. They’re commonly used by companies to expand their operations and diversify their business interests.
