In order to know the meaning of the term filial, we are going, first of all, to know its etymological origin. In this case, we can state that it derives from Latin, specifically from “filialis”, which can be translated as “relative to children” and that it is the result of the sum of several lexical components of said language such as these:
-The noun “filius”, which can be translated as “son”.
-The suffix “-al”, which means “relative to”.
The term filial can be used to refer to what is linked to a child . For example: “Filial love is the purest that exists” , “Although he is not my son, I have a filial relationship with Tadeo” , “Unfortunately, the filial bond was broken many years ago…” .
The most common use of the concept , however, refers to that body or institution that depends on another principal . Subsidiaries are common in the world of companies and sports teams .
In business, when an entity is under the control of another, it is called a subsidiary. The main company is responsible for controlling and directing the subsidiary through an administrative body.
A business group , in this framework, can be formed by the parent company and its subsidiaries . Beyond this relationship , it is important to keep in mind that the subsidiaries are separate entities, which even pay separate taxes.
Many times a company has a subsidiary through an acquisition . With this type of operation, the purchased company becomes the subsidiary of the company that completed the purchase .
Other information of interest about the subsidiary companies are the following:
-The subsidiaries, in turn, may have other subsidiaries under which they are responsible.
-They can only act under the guidelines of the group or parent company under which they are located.
If many companies have subsidiaries it is because it is considered that they bring with them an interesting series of advantages, among which we can highlight the following:
-It is a way to maximize what the benefits are.
-No less relevant is that having subsidiaries can bring with it the enjoyment of certain tax benefits.
-In the same way, we must keep in mind that it is also a way to prevent certain risks. That is, they help prevent the parent company from having risks such as negative results.
-It must also be emphasized that another notable advantage of having subsidiaries is that they are very useful when it comes to facilitating the activity of a parent company in other countries or in other specific areas of the same nation.
The South African mobile telephone operator Vodacom , to cite one case, is a subsidiary of the English firm Vodafone . This means that Vodacom depends on Vodafone .
In the field of sport , a subsidiary is a minor team that operates under the command of another team that competes in a higher category. The most important team usually sends its youth or training players to the reserve team to gain experience.
FC Barcelona “B” , which competes in the Second Division of Spanish football , is the subsidiary of FC Barcelona ( First Division team). Benfica “B” and Benfica in Portugal maintain the same link.