Affiliated companies are businesses that are connected through some form of ownership, control, or common management. The affiliation between companies may take various forms, and it implies a relationship that goes beyond the standard buyer-seller interaction. Affiliated companies often share resources, interests, or a corporate structure. Here are some common types of affiliation:

1. **Parent and Subsidiary Companies:**
– A parent company is a corporation that owns the majority of the voting stock or control in another company, known as its subsidiary. The subsidiary is, in effect, controlled by the parent company. This relationship allows the parent company to consolidate financial statements and exercise influence over the subsidiary’s operations.

2. **Sister or Sibling Companies:**
– Companies that share a common parent company are often referred to as sister or sibling companies. While they may not have a direct ownership relationship with each other, they are connected through their relationship with the same parent company.

3. **Joint Ventures:**
– Joint ventures involve two or more companies collaborating on a specific project or business venture. These companies create a separate legal entity to pursue a common goal, sharing both the risks and rewards of the venture. Joint ventures are often formed when companies bring complementary skills, resources, or expertise to the partnership.

4. **Affiliate Marketing Relationships:**
– In the context of affiliate marketing, companies may be affiliated through marketing agreements. One company, known as the merchant or advertiser, provides products or services, and affiliates promote these offerings to earn commissions on sales or leads generated through their marketing efforts.

5. **Common Ownership or Control:**
– Affiliated companies may share common ownership or be controlled by the same individuals or entities. This could involve individuals or entities owning significant portions of multiple companies, creating a network of affiliated businesses.

6. **Franchise Relationships:**
– Franchisors and franchisees are affiliated through a franchise relationship. The franchisor, the parent company, grants the franchisee the right to operate under its brand and business model in exchange for fees and royalties.

7. **Strategic Alliances:**
– Companies may form strategic alliances to achieve common objectives without establishing formal ownership relationships. These alliances can involve partnerships, collaborations, or agreements to share resources, technology, or expertise.

Affiliated companies may share branding, supply chains, technology, or other business functions. The degree of affiliation can vary, ranging from full ownership to loose partnerships. Understanding the nature of the affiliation is crucial for legal, financial, and operational considerations. Additionally, companies within an affiliation may be subject to regulatory scrutiny, especially when it comes to antitrust and competition laws.