Secondary Business

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DEFINITION of 'Secondary Business'

A part of a corporation that is not part of the corporation's core functions but supplements it instead. A secondary business can contribute to the overall health of the corporation and can hold assets just as any other business unit. It is most likely to be mentioned during the reorganization or distribution of a multibusiness corporation, and can be either part of the company making the acquisition or the target company.

INVESTOPEDIA EXPLAINS 'Secondary Business'

Even if a secondary business is spun off or sold, it may still continue to provide services for the corporation depending on the remaining investment. Examples of a secondary business are an automobile manufacturer's research and development (R&D) department or its consumer financing unit.

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