When Firms at the Same Level of Operation, Such as Auto

question 328

Multiple Choice

When firms at the same level of operation, such as auto parts dealers, get together for some illegal purpose, it is called:

• A) a horizontal restraint of trade
• B) a vertical restraint of trade
• C) a de facto merger
• D) a concentrated industry
• E) none of the other choices

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Definitions:

Merchandise

Products acquired for resale to customers in the course of business operations.

Voucher System

An accounting system that involves the use of vouchers as proof of a transaction's occurrence, used for controlling expenditures.

Disbursements

Payments made by a business in the course of its operations, often involving the outflow of cash to vendors or suppliers.

Control Procedures

Measures and policies implemented by a firm to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.