Affiliated-company meaning

The definition of “affiliated company” will vary, depending on the context in which the term is used. One way that companies are considered affiliated is when one company owns less than the majority interest in another company. Companies also may be affiliated when they are subsidiaries of a third company. Another test of affiliation is the amount of effective control that a company has over another company, even though a relatively small percentage of stock may be held, such as 10 percent or 25 percent.