The most important office of a bank is called the headquarters.
In order to know the meaning of the term headquarters , it is necessary, first of all, to discover the etymological origin of the two words that give it shape:
-House comes from the Latin “house” and was used to refer to the room built to protect oneself from the cold.
-Matrix, on the other hand, emanates from the Latin “matrix” which, in turn, is the result of the sum of two components: the noun “mater”, which is synonymous with “mother”, and the suffix “-trix”, which is used to indicate that it is a female agent.
What is a parent company
The headquarters of an organization or entity is known as the headquarters . Other branches , subsidiaries , etc. depend or derive from the parent company. For example: “I worked for five years in a branch in the central area and now I am at the headquarters” , “In recent months there have been dozens of layoffs at the headquarters” , “The headquarters of the multinational is located in Paris ” .
The idea of headquarters is often used with respect to the most important office of a bank . The directors of the institution usually work in this place. The headquarters of Banco Ciudad de Buenos Aires , to cite one case, operates in a building located in the Buenos Aires neighborhood of San Nicolás , where the main financial area of the Argentine capital is located.
Telefónica SA is the parent company of subsidiaries such as Movistar, O2 and Vivo.
Advantages and disadvantages
From an economic point of view, if more and more companies and entities of different categories are opting to have a parent company, it is because it is considered that having one brings with it a long list of advantages. Specifically, among the most significant is the fact that it does not involve a significant amount of fixed costs and allows for better management or organization. And it acts as a control and operations center in general, although, above all, in aspects such as sales, expenses and costs.
On the other hand, it must also be established that there are those who highlight that the parent company also brings with it a series of disadvantages. We are referring to some such as that it requires some maintenance costs or that it cannot be used in all the desired sectors.
Many companies have a headquarters. And this would be the case, for example, of Motorola, which has its own in Schaumburg (Illinois – United States).
Headquarters and subsidiaries
The company that owns other companies that depend on it is also called the parent company or parent company , since it has more than half of the share capital. This means that, in a business group, the parent company is the most relevant company.
The link between the parent company and the subsidiaries varies in each case. There are parent companies that are only responsible for managing capital , while others participate directly in productive activity.
Telefónica SA , to cite one case, is the parent company of the Movistar brand , a cellular (mobile) telephone operator with a presence in Spain and several Latin American countries. The operators Vivo and O2 are other subsidiaries of Telefónica .