subsidiary
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subsidiary
A legally independent company that is economically and organizationally controlled by another company (the parent company). The parent company usually holds the majority of shares in the subsidiary.
Die deutsche Tochtergesellschaft des amerikanischen Konzerns hat ihren Sitz in Frankfurt.
The German subsidiary of the American corporation is based in Frankfurt.
The word is composed of 'Tochter' (daughter) and 'Gesellschaft' (company). It uses a metaphor: the company is like a 'Tochter' (daughter) of a larger company, the 'Muttergesellschaft' (parent company).
Die Muttergesellschaft hat ihren Sitz in den USA.
The parent company is based in the United States.
To express affiliation, the preposition 'von' or the genitive is used. So you say 'eine Tochtergesellschaft von [Firma]' (a subsidiary of [company]) or 'die Tochtergesellschaft des Konzerns' (the corporation's subsidiary).
Diese Firma ist eine Tochtergesellschaft von einem großen Technologiekonzern.
This company is a subsidiary of a large technology corporation.
In an economic context, the word is often used with verbs such as 'gründen' (to found), 'eröffnen' (to open), or 'leiten' (to manage).
Der Konzern plant, eine neue Tochtergesellschaft in Asien zu gründen.
The corporation plans to found a new subsidiary in Asia.
daughter
'die Tochter' and 'die Tochtergesellschaft' can mean the same thing in a business context. 'Tochter' is then the short form of 'Tochtergesellschaft'. Both refer to a company that belongs to a larger parent company and is controlled by it. 'Tochtergesellschaft' sounds more precise and is especially common in contracts, reports, or official texts. 'Tochter' is shorter and is often used when the context is already clear.
Nächsten Monat verkauft der Konzern eine kleine Tochtergesellschaft in Spanien.
Next month, the corporation is selling a small subsidiary in Spain.
Die Tochter des Autoherstellers produziert Batterien.
The car manufacturer's subsidiary produces batteries.