Reforming Business

Question 5 • (OC27) US History-2100310-S1-Meadows

Based on what you have learned, which description best represents a trust?

Answer

a large and profitable corporation that uses price and quality to compete with other companies to gain a major share of a market

a large corporation that has swallowed up competitors to destroy competition and gain a monopoly over an industry

a large and profitable corporation that uses only price to compete with other companies to gain a major share of a market

Explanation

A trust is a business arrangement in which a company gains control over competitors, reducing or eliminating competition and creating a monopoly. Choice B describes a corporation that has swallowed up competitors to dominate an industry. Choices A and C describe competition between companies rather than the control of an industry by one company.

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