What is a secondary trade?
The secondary company is a unit within a larger company that supports basic functions with services or products, including raw materials and stocks. Such units are discussed in annual reports and other statements to shareholders for the purpose of providing information on business activities and profitable divisions within the company. They can also be launched or sold to create new businesses or transfer to other business entities if the company believed it would be in its long -term interest. The role of secondary business may depend on society and its overall mission and goals. For example, the airline wants to keep the robust arm of research and development to compete with other companies in this industry, develop new products and solve problems as soon as they appear. It can work with a high level of independence to allow workers to focus on their goals rather than the company's overall directives. Can secure raw materials, components and products produced by subcontractors andOther companies. These support the basic activities of business, such as the production of cars with metals acquired and managed by secondary trade. In this case, it focuses on obtaining the necessary products in cost -effective and timely manner to ensure that the basic operations are not interrupted.
Company officials can review documentation, policy and other materials from secondary business to learn more about its operation, audit for problems, and make sure it remains on the task. They may include negotiations on the mission or direct it to different activities. The company could give up the production of the production, for example, in this case it needs various support functions from its secondary units.
In the case of Spinoff, which sells a secondary company from the main company, it can maintain a business relationship. For example, research and development weapons could become an individualThey continue to work closely with their former parent companies. Similarly, suppliers could maintain contractual relations. Sale is sometimes necessary to reduce the size of the company, access to liquidity or otherwise reorganization, but the company may not want to lose its valuable connection, which is important to remain in connection with the former secondary trade.