A group is residually finite when every nonidentity survives in some finite quotient: there are a finite group and a homomorphism with .
Every subgroup of a residually finite group is residually finite, because a finite quotient separating an element of the ambient group also separates it after restriction to the subgroup.
An infinite residually finite group is not a simple group. For a nonidentity element, residual finiteness supplies a map to a finite group in which it survives. Its kernel is proper and cannot be trivial, since an infinite group cannot inject into a finite group.