When Two Companies Each Have a Director on the Board

question 129

True/False

When two companies each have a director on the board of a third company, it is referred to as indirect interlock.

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Definitions:

Congestion Fee

A congestion fee is a charge imposed on users of a crowded public goods, such as city roads or public transit systems, intended to reduce traffic congestion and improve air quality.

Internalize Costs

The process of ensuring that businesses or individuals take into account the external costs they impose on society in their decision-making.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a balance of the market.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the equilibrium price.