Sidosyksiköistä

Sidosyksiköistä, in Finnish, translates to "subsidiaries" or "affiliated companies" in English. This term refers to a company that is controlled by a parent company. The parent company typically owns more than 50% of the subsidiary's voting stock, granting it the power to direct the subsidiary's management and operations.

Subsidiaries can be established for various strategic reasons. They might be created to enter new markets, develop specialized products or services, or to isolate financial risk. A parent company can also acquire an existing company and operate it as a subsidiary. The legal and financial relationship between a parent and its subsidiary is usually distinct, though they are part of a larger corporate group.

The level of control a parent company exerts over a subsidiary can vary. In some cases, the subsidiary may operate with a high degree of autonomy, while in others, its operations are closely managed by the parent. Reporting structures and governance policies are typically established to ensure alignment with the parent company's overall objectives. Financial statements of subsidiaries are often consolidated into the parent company's reports. The term sidosyksikkö highlights this close but distinct relationship within a corporate structure.