[əˈsoʊsiət ˈkʌmpəni]
Definition: is a company a part of whose shares belong to another enterprise. Commercial organizations for the purpose of coordinating their entrepreneurial activities, as well as representing and protecting common property interests, may create and register firms in the form of associations or unions that are non-profit organizations. Business associations are just one of many other examples of deliberately uniting a group of people with the goal of earliest achievement of common interests. In ancient times, trade caravans, antique associations of small artisans, medieval guilds, corporations and shops played a similar role.
Associate company in a sentence:
- The associate company is formed through the repurchase of a block of shares.
- The associate company becomes a subsidiary when buying out more than half of the company's securities.
Synonyms and related words: shareholding, charter capital, holders of securities
