Parent companies and subsidiaries form a dynamic business relationship 💼✨. A parent company is like the big tree that supports smaller branches. It often owns more than 50% of the shares in its subsidiary, giving it control over decisions. Think of it as a parent guiding its child—while the subsidiary operates independently, the parent provides resources and strategic direction 🌱/Branches can focus on specific markets or products while leveraging the parent’s reputation and network 🌟. This setup benefits both sides: the parent maximizes profits, and the subsidiary gains access to funding and expertise 🤝. However, it's crucial for them to maintain clear boundaries to avoid conflicts of interest. When managed well, this relationship fosters growth and innovation 🚀💡.