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:

Differentiation

The process of distinguishing a product or service from competitors to make it more attractive to a particular target market.

Backward Integration

A business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, often including the acquisition of or merger with suppliers.

Keiretsus

A Japanese term for a group of affiliated companies that form a tight-knit alliance to work toward mutual business goals.

Response Strategy

A plan of actions designed to address specific challenges, changes, or opportunities in the business environment.