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Joint Ventures vs Subsidiaries vs Associates: Complete Guide for Smart Investors (With Examples)

Joint Ventures vs Subsidiaries vs Associates: Complete Guide for Smart Investors (With Examples) Understanding the difference between Joint Ventures (JV), Subsidiaries, and Associate Companies is extremely important for investors, stock market participants, and business owners. These structures impact financial statements, control, risk exposure, and valuation. If you analyze companies like Tata Sons , Reliance Industries Limited , or Hindustan Unilever Limited , you’ll often find a mix of subsidiaries, joint ventures, and associates in their annual reports. Let’s break everything down in a simple, investor-friendly way. 1️⃣ What is a Subsidiary Company? ✅ Control Criteria: 📌 Key Features: 🔎 Example: 2️⃣ What is an Associate Company? ✅ Ownership Criteria: 📌 Key Features: 🔎 Example: 3️⃣ What is a Joint Venture (JV)? ✅ Key Conditions: 📌 Key Features: 🔎 Example: 4️⃣ Key Differences (Comparison Table) Basis Subsidiary Associate Joint Venture Ownership >50% 20–50% Shared Contr...