Headquarters-Parent-Subsidiary Relationship

The headquarters-parent-subsidiary relationship describes the structure of a corporation where a central office (headquarters) oversees one or more smaller companies (subsidiaries) that operate independently but are owned by the parent company. The parent company sets overall goals and policies, while subsidiaries focus on their specific markets or services. This arrangement allows for efficient management and resource distribution, enabling the parent company to diversify its operations and minimize risks while benefiting from local expertise in various regions or sectors.