In contrast to the wholly owned subsidiary, a joint venture may involve a loss of managerial control.

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In a joint venture, two or more parties come together to form a new entity and share ownership, profits, and losses. This means that both parties have a say in the decision-making process and managerial control may be shared. In a wholly owned subsidiary, however, the parent company has full control and ownership, allowing them to make all decisions and have full managerial control.

In Contrast to the Wholly Owned Subsidiary, a Joint Venture