What is an associated enterprise? How many criterias to determine and what are those?

Question

Accepted Answer

An associated enterprise is a company that has a significant influence over another company's operations.

An associated enterprise is determined by the level of control or influence it has over another company.
There are six criteria to determine if a company is an associated enterprise.
These criteria include ownership, control, management, financial transactions, technology, and business operations.
For example, if Company A owns more than 50% of Company B, then Company B is considered an associated enterprise of Company A.
Another example is if Company A provides significant financial support to Company B, then Company B may be considered an associated enterprise of Company A.

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