Joint Ventures, Subsidiaries, and Associates – A Complete Guide for Investors & Business Owners When analyzing any company — whether for investment , business strategy , or financial reporting — you will often come across terms like Joint Venture , Subsidiary , and Associate Company . Understanding these concepts is crucial because they directly impact a company’s profitability, control, risk exposure, and valuation . Let’s break them down in simple language with examples and investor insights. 1️⃣ What is a Joint Venture (JV)? A Joint Venture (JV) is a business arrangement where two or more companies come together to start a new project or entity , sharing ownership, risks, and profits. Key Features: Shared ownership (often 50:50 or agreed ratio) Shared control Shared profits & losses Created for a specific purpose or project Example: Sony Ericsson was a joint venture between Sony and Ericsson to manufacture mobile phones. Both companies combined t...