Firms in a trust act as a single firm, meaning they work together and operate as one entity rather than as separate and competing businesses. This collaboration allows them to coordinate their actions and potentially increase their bargaining power with suppliers, customers, and other stakeholders.

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Firms in a Trust

Question 385

Multiple Choice

Firms in a trust

A) act as a single firm.
B) act in their own self-interests.
C) trust each other.
D) do not allow a small number of trustees to make decisions for participating firms.

Correct Answer: