Unfair trade practice acts were enforced to:
a. ensure the adoption of the Sherman Act that makes bait pricing illegal.
b. prevent oligopoly leaders from joining together and fixing prices at the highest rates that a market will allow.
c. establish penalties for companies that break the Clayton Act by engaging in predatory pricing.
d. protect small local firms from giant companies that operate efficiently on razor-thin profit margins.
ANSWER: d
Unfair trade practice acts were enforced to protect small local firms from giant companies that operate efficiently on razor-thin profit margins. Unfair trade practice acts put a floor under wholesale and retail prices and prevent firms from selling below cost.
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Which of the following statements about the assignment of a life insurance policy is true?
A) The insurer must be notified of any assignment or the death proceeds will be paid to the named beneficiary. B) Under an absolute assignment, the only right transferred to a new owner is the right to change the beneficiary designation. C) As long as a collateral assignment exists, a creditor will receive the entire death benefit even if the loan has been repaid. D) Assignment may be made only with the permission of the insurer and the beneficiary.
In order to minimize potential problems in alliances, companies should most likely choose partners with ________
A) competitively sensitive technology B) complementary products and skills C) significant control of the target market D) superior bargaining power in the same industry