Asked by Dulce Medina on Jun 27, 2024
Verified
____ are formed when an individual sits on the board of directors of two or more non-competing companies.
A) conglomerates
B) oligopolies
C) corporations
D) codetermination circles
E) interlocking directorates
Interlocking Directorates
Are formed when an individual sits on the board of directors of two or more noncompeting companies.
Board of Directors
A group of individuals elected to represent shareholders and make decisions on major company issues, including corporate policies and strategic goals.
Non-Competing
Pertaining to elements or entities that do not engage in competition against each other, either within markets or sports.
- Define key economic terms and concepts such as economy, capitalism, communism, conglomerates, and corporations.
Verified Answer
FB
Francy BlancJun 28, 2024
Final Answer :
E
Explanation :
Interlocking directorates are formed when an individual sits on the board of directors of two or more non-competing companies. This can create potential conflicts of interest and decrease competition in the industry.
Learning Objectives
- Define key economic terms and concepts such as economy, capitalism, communism, conglomerates, and corporations.