A Trade Association

question 55

Multiple Choice

A trade association

• A) is always a per se violation of Section 1 of the Sherman Act.
• B) may be legal if it is sufficiently beneficial to both the association and the public.
• C) is an innovative, legally efficient approach to doing business.
• D) always creates illegal territorial or customer restrictions.

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Definitions:

Straight-line Depreciation

A method of allocating the cost of a tangible fixed asset over its useful life in equal annual installments.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Average Accounting Return

The ratio of the average net income that an investment generates to the average book value of the investment over its life.

Salvage Value

The estimated residual value of an asset after it has been fully depreciated and is no longer in use.