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*'''[[Branch|Branches]]''': If a [[company]] is a person, think of a [[branch]] like an arm or a leg. A “[[branch]]” is a single office or presence of a larger [[legal entity]]. It does not have its own [[legal personality]] or [[creditworthiness]] — like an arm or a leg it is part of a greater whole. A [[branch]] may just be a single premises of the company — the “Muswell Hill branch of Sainsbury’s”, for example — but in the world of [[high finance]] it is usually whole presence of that [[legal entity]] in a given city or country. | *'''[[Branch|Branches]]''': If a [[company]] is a person, think of a [[branch]] like an arm or a leg. A “[[branch]]” is a single office or presence of a larger [[legal entity]]. It does not have its own [[legal personality]] or [[creditworthiness]] — like an arm or a leg it is part of a greater whole. A [[branch]] may just be a single premises of the company — the “Muswell Hill branch of Sainsbury’s”, for example — but in the world of [[high finance]] it is usually whole presence of that [[legal entity]] in a given city or country. | ||
*'''[[Affiliate]]s''': By contrast, a company’s [[affiliate]] is a related but separate [[legal entity]]. If a company is a person, its affiliate is its parent, child, or sibling. Parent affiliates are actually even called [[parent]]s. Children are [[wholly-owned subsidiaries]], ugly stepchildren and bastards are [[majority-owned subsidiaries]] and siblings are known as companies “under common ownership”. There is plenty of scope for ugly sisters, black sheep and long-lost cousins from Australia, as you can imagine. Proper [[Affiliate|affiliates]] may be consolidated from a financial reporting perspective, but generally (and unless it has specifically agreed to) an affiliate is not responsible for performing the obligations of its any of its | *'''[[Affiliate]]s''': By contrast, a company’s [[affiliate]] is a related but separate [[legal entity]]. If a company is a person, its affiliate is its parent, child, or sibling. Parent affiliates are actually even called [[parent]]s. Children are [[wholly-owned subsidiaries]], ugly stepchildren and bastards are [[majority-owned subsidiaries]] and siblings are known as companies “under common ownership”. There is plenty of scope for ugly sisters, black sheep and long-lost cousins from Australia, as you can imagine. Proper [[Affiliate|affiliates]] may be consolidated from a financial reporting perspective, but generally (and unless it has specifically agreed to) an affiliate is not responsible for performing the obligations of its any of its [[affiliate]]s unless it agrees to do so by [[contract]] (such as a [[guarantee]]). |