> Joseph wrote: > >> http://www.pentax.co.jp/english/news/2005/20050210.pdf
> > And I don't understand...how can the sales subsidiary make a huge loss > when the parent company is making a huge profit? Maybe I'm just being > naive. > It's possible if the parent company sells the final products to it's sales subsidary for a price much too high. In that case, the profits are earned by the parent company (Profit = Price (too high) - production costs) and the doughter can't earn enogh mony from the customers to pay the mother's prices. I can't say that it's actually like that at pentax. But this could be possible. And it would make sense if the two companies would pay their taxes in different countries with different tax levels. Michael
