A division is a type of subsidiary of a larger organization. But a division functions differently than a subsidiary. A division does not usually have a separate legal branded name, but a subsidiary usually does.

An example of this would be to look at Hewlett Packard (HP), the computer and printer company. HP has several division, 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 (a part of HP since 2000), operates as a subsidiary, using the Compaq brand name.

Mack Trucks, continues to run itself separately, but is a wholly-owned subsidiary of AB Volvo. Volvo Trucks also sells trucks under the Volvo name. But, within Mack, there is a division called Mack de Venezuela C.A., that does final assembly and sells trucks in South America.

See also: Subsidiary

Organizations

Division (regnskab)