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Types of business collaborations - SS1 Commerce Past Questions and Answers - page 1

1

What is a consortium?

A

Collaboration between multiple companies

B

Agreement between competing companies

C

Collaboration between multiple companies

correct option: c

Collaboration between multiple companies

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2

Which of the following is considered illegal and anti-competitive?

A

Consortium

B

Cartel

C

Amalgamation/merger

correct option: b

Cartel

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3

What is the purpose of amalgamation/merger?

A

To join companies and create a stronger entity

B

To restrict competition

C

To exercise control over subsidiary companies

correct option: a

To join companies and create a stronger entity

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4

What is a trust holding?

A

Collaboration between multiple companies

B

Agreement between competing companies

C

Organization that controls multiple companies

correct option: c

Organization that controls multiple companies

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5

Which business arrangement can involve sharing risks, costs, and knowledge?

A

Consortium

B

Cartel

C

Amalgamation/merger

correct option: a

Consortium

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6

State one key difference between a cartel and a consortium.

A cartel involves anti-competitive practices, while a consortium involves collaboration for a specific project or venture.

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7

Name one benefit of amalgamation/merger.

Increased market presence and improved efficiency.

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