JAMB Commerce 2010 Question 28

Question 28

Business Combinations

An illegal arrangement by manufacturers to control the price or condition of sale of a product is

  1. A.ring
  2. B.factoring
  3. C.consortium
  4. D.merger.
Show the answer and explanation

Answer: A (ring)

Explanation

A ring is a secret agreement among sellers to fix prices or terms of sale, which the law forbids.