Corporate Family Trees

I often see the following terminology misused in the press. For the Investigator, these terms have very specific meanings. The Investigator must also recognise that most laymen will misuse these terms.

A parent company controls separately incorporated firms. The controlled company is a subsidiary. A subsidiary has a parent when the controlling firm owns more than 50% of its shares.

Divisions are business names owned by a corporation. A division specialises in some product or service offered by the company that owns the business name. A corporation using a registered business name is doing business as that name, hence the term DBA (Doing Business As).

An affiliate is a corporation which is owned by more that one entity which do not individually own more that 50% each.

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