Which of the Following Is True of a Cartel

question 31

Multiple Choice

Which of the following is true of a cartel?

• A) It is a contract for the licensing of industrial property rights to two or more licensees.
• B) It is a combination of independent business firms organized to regulate the production, pricing, and marketing of goods by its members.
• C) It is a provision according to which an industry-wide patent pool must grant reasonable access to the pool to any firm wishing to compete so that no firm will be disadvantaged.
• D) It is a license that restricts who may compete with the licensee.

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Definitions:

Cash Dividend

A payment made by a company to its shareholders, usually in cash, out of its earnings.

Book Value

Book value is the net value of a company's assets as recorded on its balance sheet, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Quarterly Dividends

Dividends paid by a corporation to its shareholders at the end of each quarter of its fiscal year.

Stock Split

A corporate action where a company divides its existing shares into multiple shares, potentially making the stock more affordable for investors.