Radient Pharmaceuticals Corporation fka RXPC

[guardiangel]

Differences Between Wholly Owned Subsidiaries & Divisions

This is why Mac changed ADI into a division from a wholly owned subsidiary...imo Wolf Pack

Particularly when businesses produce more than one product or offer more than one service, they often divide into divisions. When a business is structured as a collection of divisions, each division focuses on a different section of the business plan and works toward a separate goal.

This is why Mac changed ADI to a Division, so he the President and Akio the Secretary can operate ADI on a day to day basis without the aussies involvement...imo Wolf Pack

A wholly owned subsidiary, on the other hand, is a completely separate entity from the main business. Although this business is technically separate from the larger business, the owners of the larger business still retain full control over this smaller business, giving them the ability to guide the subsidiary's
actions.

Creating divisions is substantially easier than developing subsidiaries. Because a division is an internal segment of a company, not an entirely separate entity, business owners create and end divisions at their whim. Also, because individuals in each division are employed by the same company, it's easier to modify staffing to fit with this setup.

When a business elects to create a wholly owned subsidiary, it may find that retaining control of this subsidiary proves challenging. Although the owners of the larger business technically control the subsidiary, they're likely not a major part of the day-to-day decisions that take place in the subsidiary group, potentially making managing this separate entity more difficult.

http://smallbusiness.chron.com/differences-between-wholly-owned-subsidiaries-divisions-32631.html