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Author Question: Bob is on the board of Megagiant Corp. and Karen is on the board of Supersize Inc. Both Bob and ... (Read 44 times)

pepyto

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on: Jul 2, 2018
Bob is on the board of Megagiant Corp. and Karen is on the board of Supersize Inc. Both Bob and Karen serve on the board of Mega-Superbank. This type of interlocking directorate is called a(n)
 
  a. direct interlock.
  b. indirect interlock.
  c. conflict of interest.
  d. shared monopoly.

Question 2

Which of the following is one of the negative consequences of megamergers?
 
  a. They increase the centralization of capital, reducing competition and raising prices for consumers.
  b. They increase the power of unions for the workers who are employed by these companies.
  c. They eliminate the corporate debt that finances the government and its programs.
  d. They create overproduction in terms of new plants, products, and jobs.


k.lashomb

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Reply #1 on: Jul 2, 2018
Answer to Question 1

Answer: b. indirect interlock.

Answer to Question 2

Answer: a. They increase the centralization of capital, reducing competition and raising prices for consumers.


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