Were the parent profits made by the subsidiary company made by the skill and direction of the parent company?

Question

Were the parent profits made by the subsidiary company made by the skill and direction of the parent company?

Answer 1

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Answer 2

If I understand your question.

There is typically a royalty charge from the parent to the subsidiary.  This fee goes to the parent.

In other instances, all profit (while reported separately by affilliate) is simply rolled up to the parent.  Taxes are paid at the parent level.

Still in other arrangements there are Royalty and Franchise fees.  (For example, what an owner of a McDonalds in China might pay).

It all depends upon the arrangement with the parent.