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A division of a
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...

business
, sometimes called a business sector or business unit (segment), is one of the parts into which a
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...

business
,
organization An organization, or organisation (Commonwealth English The use of the English language English is a of the , originally spoken by the inhabitants of . It is named after the , one of the ancient that migrated from , a peninsu ...

organization
or
company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common pu ...

company
is divided.


Overview

Divisions are distinct parts of a business. If these divisions are all part of the same company, then that company is legally responsible for all of the obligations and debts of the divisions. In the banking industry, an example would be
OneWest Bank OneWest Bank, a division of CIT Bank, N.A., is a regional bank with over 60 retail branches in Southern California Southern California (popularly known as SoCal; es, Sur de California) is a geographic and cultural region that generally compr ...
and its relationship with
CIT Bank CIT Group Inc. (CIT) is an American financial holding company and bank holding company incorporated in Delaware Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic region of the United States, bordering M ...
. CIT Bank is the retail banking segment of financial services company
CIT Group CIT Group Inc. (CIT) is an American financial holding company and bank holding company incorporated in Delaware Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic region of the United States, bordering M ...
. OneWest Bank, although a separate legal entity, is classified as being a division of CIT Bank. OneWest continues to use its own logo and has a branch of retail banks in Southern California, but for the purposes of running its business and reporting financial results, CIT Group consolidates all OneWest Bank activity into CIT Bank. In addition to its OneWest Bank division, CIT Bank includes an
online bank A neobank (also known as an online bank, internet-only bank, virtual bank or digital bank) is a type of direct bank that operates exclusively online without traditional physical branch (banking), branch networks. History The term ''neobank'' has b ...
.


Legal responsibility

Subsidiaries are separate, distinct
legal Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its boundari ...
entities for the purposes of
taxation A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, interacting or interrelated elements that act accord ...
,
regulation Regulation is the management of complex systems A complex system is a system composed of many components which may interaction, interact with each other. Examples of complex systems are Earth's global climate, organisms, the human brain, infras ...

regulation
and
liability Liability may refer to: Law * Legal liability, in both civil and criminal law ** Public liability, part of the law of tort which focuses on civil wrongs ** Product liability, the area of law in which manufacturers, distributors, suppliers, retai ...
. For this reason, they differ from divisions, which are businesses fully integrated within the main company, and not legally or otherwise distinct from it. The ''
Houston Chronicle The ''Houston Chronicle'' is the largest daily newspaper in Houston, Texas Houston ( ) is the List of cities in Texas by population, most populous city in Texas, List of United States cities by population, fourth-most populous city in the ...
'' highlighted that the creation of a division "is substantially easier than developing subsidiaries. Because a division is an internal segment of a company, not an entirely separate entity, business owners create and end divisions at their whim. Also, because individuals in each division are employed by the same company, it's easier to modify staffing to fit with this setup".


See also

*
Brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business Business is the activity of making one's living or making mon ...

Brand


References

Types of business entity {{Authority control