subsidiary - Master This Word
Master this word with our 5-step learning method – Learn English in English
subsidiary Word Meanings
- a company controlled by another company
- providing support or assistance
- secondary or subordinate to something larger
subsidiary Example Sentences
Example sentences are the start of understanding. Don't rush to memorize. First feel how the word works in a sentence.
subsidiary Phonetic & Pronunciation
UK
/səbˈsɪdɪəri/
US
/səbˈsɪdʒəˌri/
subsidiary Word Etymology
sub- = under + sid- = sit + -iary = relating to. Origin of the word traces from Latin, through Old French, to English. Imagine a large company sitting on top and a smaller one seated beneath, providing necessary support.
Note 1: These definitions and etymologies are not standard dictionary definitions, but extended explanations provided to help with memorization and understanding of the actual application of words. Through this background information, we strive to make words more vivid and easier to understand, and help you remember their meanings in real life.
Note 2: LexiTalk designs the learning flow around the linguistics principle of “Comprehensible Input.” When learners encounter material that is slightly above their level but still understandable from context, the brain naturally absorbs the language. That’s why we keep every word inside authentic contexts, using examples and associations to help you understand it and use it flexibly.
Read the FAQ explanation of Comprehensible InputReal Context
A subsidiary is a company that is controlled by another company, known as the parent. The parent typically owns a majority of the subsidiary’s shares and can influence or determine its strategic decisions, while the subsidiary often maintains its own management, branding, and financial records. Subsidiaries are common for expanding into new markets, separating risk, or organizing different product lines. The term can also describe something that acts as a secondary support to a larger system, though in business contexts it refers to corporate ownership. Learn to distinguish subsidiary from affiliate (related but not controlled) and branch (geographically separate but not legally distinct).
Usage Reminders
- - Not the same as a branch or affiliate; it implies control by a parent company.
- - Use with parent company to show ownership.
- - Can operate in its own right but under corporate governance.
- - Distinguish from subsidiaries in non profit or government contexts.
- - Remember it can also mean secondary support in non business talk.
Common Misconceptions
- Subsidiary equals branch of a company
- Subsidiary means only a minor part of a business
- All subsidiaries are unrelated to the parent
- Affiliates and subsidiaries are the same
- A subsidiary cannot be abroad
Thinking Differences
In English, the key idea is ownership and control. Learners often confuse subsidiary with branch or affiliate and misapply secondary meanings when talking about corporate structure.
Learning Tips
- Learn the parent child relationship visually, e. g., parent company and child subsidiary.
- Differentiate ownership from affiliation by focusing on control.
- Remember that subsidiary can be a legal entity with separate accounts.
- Be careful not to use subsidiary where branch is meant geographically.
- Practice with business contexts: mergers, acquisitions, and reorganizations.
- Compare to affiliate to recognize non controlling relationships.
5-Step Learning Method - Learn English in English
Step 1: Meaning
What is the meaning of 'subsidiary'?
A.Small business
B.Parent company
C.Supportive
D.Unimportant
Step 2: Usage
In which of the following sentences is 'subsidiary' used correctly?
A.The subsidiary company was the main competitor.
B.He was subsidiary to his manager.
C.She worked for a subsidiary of a larger corporation.
D.The subsidiary role was the most important.
Step 3: Similar Words
Which word is an antonym of 'subsidiary'?
A.Secondary
B.Auxiliary
C.Assistive
D.Primary
Step 4: Opposite Words
In a real-life context, how does 'subsidiary' relate to a parent company?
A.Competition
B.Independence
C.Erroneous
D.Ownership
Step 5: Mastery
Reflect on the importance of having subsidiary companies within a larger corporation.
A.Expansion
B.Efficiency
C.Diversification
D.Isolation
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