Asked by Mariam Bastami, M.Eng. on Jun 08, 2024
Verified
Outright ownership of a company by a second company in another industry is a way that corporations may be linked.Interlocking directorates are another.Interlocking directorates are formed when an individual sits on the board of directors of two or more non-competing companies.
Interlocking Directorates
The practice of sharing board members among different companies, which can lead to a concentration of power and influence.
Board of Directors
A group of elected or appointed members who jointly oversee the activities and governance of a company or organization.
Outright Ownership
A legal term indicating that a property or asset is owned completely without any encumbrances or conditions.
- Disentangle factual from unfactual information about labor environments and organizational protocols.
- Expound on primary economic terms and concepts, such as economy, capitalism, communism, conglomerates, and corporations.
Verified Answer
TP
Trina PetersonJun 12, 2024
Final Answer :
True
Explanation :
Interlocking directorates are formed when an individual sits on the board of directors of two or more non-competing companies.
Learning Objectives
- Disentangle factual from unfactual information about labor environments and organizational protocols.
- Expound on primary economic terms and concepts, such as economy, capitalism, communism, conglomerates, and corporations.