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TRADE ASSOCIATIONS AND OTHER ENTERPRISES

CONTENT

  1. Consortium
  2. Cartel
  3. Amalgamation/Merger/Combine
  4. Trust
  5. Holdings

 

Consortium

Meaning of Consortium

It is an association of firms that pool their financial resources together to finance a project they cannot embark upon individually as a result of the project’s complexity or financial requirement.

Resources for Forming a Consortium

  1. To finance a project, which requires a large capital outlay.
  2. When the project is technically complex

EVALUATION

  1. What is a consortium?

 

Cartel

Meaning of Cartel

A cartel is the association of firms, producers etc, in the same line of business formed to acquire or possess a monopoly business power. Cartel will arise where there are very few sellers or firms in one line of trade. Cartel was first developed in Germany.

The main purpose of cartel is to;

(i) Regulate the prices of their products by controlling output of members.

Lesson tags: Commerce Lesson Notes, Commerce Objective Questions, SS2 Commerce, SS2 Commerce Evaluation Questions, SS2 Commerce Evaluation Questions First Term, SS2 Commerce First Term, SS2 Commerce Objective Questions, SS2 Commerce Objective Questions First Term
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