What Is a Division of a Company?
Last Updated Apr 15, 2020 5:22:16 AM ET
A division is a smaller part of a parent company tasked with overseeing different types of products or services than those offered by the parent company. Divisions may or may not operate under the same name as the parent company.
Large corporations generally create divisions when they market more than one type of product or service. Each division focuses on a specific aspect of the parent company's business plan. The parent company is legally responsible for the debts and obligations of its divisions. In contrast, a subsidiary is a separate legal entity despite it still being owned by the parent company.
More From Reference

Why Does Massachusetts Celebrate Patriots' Day With the Boston Marathon?

Ireland Vacation Castles: Where to Stay and What to Tour

Fact Check: Is the COVID-19 Vaccine Safe?

7 History Podcasts You Should Download Today

The Life of Sacagawea — and What Your History Book Didn't Tell You

How Can I Combat Food Waste?