A trust is an arrangement where the owners of several firms attempt to drive each other out of business by lowering their prices.

Question

Quizplus · Accepted Answer

This statement is completely inaccurate. A trust is actually a legal agreement where a group of companies agrees to work together to limit competition and control prices in a particular industry, rather than trying to drive each other out of business. Trusts were popular in the late 19th and early 20th centuries in the United States, and were eventually outlawed by the Sherman Antitrust Act of 1890.

A Trust Is an Arrangement Where the Owners of Several