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Division (business)



 
 
A division of a business entity is a portion of that business that operates under a different name. It is the equivalent of a corporation obtaining a fictitious name or "doing business as
Doing business as

The phrase "doing business as" is a legal writing, meaning that the name of the business or operation does not include the legal name of its sole proprietorship, the names of all partnership, or the official registered name of the limited partnership or corporation that owns it....
" certificate and operating a business under that fictitious name. A division is different from a subsidiary
Subsidiary

A subsidiary, in business matters, is an entity that is controlled by a bigger and more powerful entity. The controlled entity is called a company , corporation, or limited liability company, and the controlling entity is called its parent ....
, in that a subsidiary is a separate legal entity owned by the primary business. A division is a part of the primary business, is not separate from that business, and the primary business is legally responsible for all of the obligations and debts of the division.

Generally, only an "entity", e.g.






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A division of a business entity is a portion of that business that operates under a different name. It is the equivalent of a corporation obtaining a fictitious name or "doing business as
Doing business as

The phrase "doing business as" is a legal writing, meaning that the name of the business or operation does not include the legal name of its sole proprietorship, the names of all partnership, or the official registered name of the limited partnership or corporation that owns it....
" certificate and operating a business under that fictitious name. A division is different from a subsidiary
Subsidiary

A subsidiary, in business matters, is an entity that is controlled by a bigger and more powerful entity. The controlled entity is called a company , corporation, or limited liability company, and the controlling entity is called its parent ....
, in that a subsidiary is a separate legal entity owned by the primary business. A division is a part of the primary business, is not separate from that business, and the primary business is legally responsible for all of the obligations and debts of the division.

Generally, only an "entity", e.g. a corporation, limited liability company, etc. would have a "division"; an individual operating in this manner would simply be "operating under a fictitious name".

An example of this would be to look at Hewlett Packard (HP), the computer and printer company. HP has several divisions, with the printer division, that makes laser and inkjet printers, being the largest and most profitable division. The divisions of HP, like the Printing & Multifunction division, the Handheld Devices (includes the old calculator) division, the Servers division (mini and mainframe computers), etc., all use the HP brand name. But, Compaq
Compaq

Compaq Computer Corporation was an United States personal computer company founded in 1982, and is now a brand name of Hewlett-Packard Company....
 (a part of HP since 2000), operates as a subsidiary, using the Compaq brand name.

Mack Trucks
Mack Trucks

Mack Trucks is one of the world's leading truck-manufacturing company . It is currently a subsidiary of AB Volvo. The company's headquarters are located in Allentown, Pennsylvania, United States, in the Lehigh Valley....
 continues to run itself separately, but is a wholly owned subsidiary of AB Volvo. Volvo Trucks also sells trucks under the Volvo name. Within Mack, there is a division named Mack de Venezuela C.A. that does final assembly and sells trucks in South America.

See also

  • Subsidiary
    Subsidiary

    A subsidiary, in business matters, is an entity that is controlled by a bigger and more powerful entity. The controlled entity is called a company , corporation, or limited liability company, and the controlling entity is called its parent ....