Trade Associations
Commerce · 50 practice questions
Objectives and functions of trade and manufacturers' associations (e.g. Cocoa Farmers' Association, Garri Sellers' Association, Poultry Farmers' Association); objectives and functions of Chambers of Commerce.
- Discuss the objectives and functions of trade and manufacturers' associations.
- List the objectives and functions of Chambers of Commerce.
Try a few questions
- Practice question 1
Membership in a relevant trade association can benefit an individual business by enhancing its
- A.Ability to operate outside the law
- B.Isolation from other businesses in the same trade
- C.Credibility and reputation, since association membership can signal adherence to certain standards
- D.Exemption from all forms of taxation
Show the answer
C. Credibility and reputation, since association membership can signal adherence to certain standards
Membership can enhance a business's credibility, signalling adherence to recognized industry standards.
- Practice question 2
One key function of a trade association is to
- A.Act as the sole regulator of the entire economy
- B.Fix all prices in the national economy by law
- C.Provide members with information, training and a collective voice in dealing with government or other bodies
- D.Replace individual businesses entirely
Show the answer
C. Provide members with information, training and a collective voice in dealing with government or other bodies
Trade associations provide members with information, training and a collective voice in external dealings.
- Practice question 3
Trade associations may engage in collective bargaining or advocacy with government seeking benefits such as
- A.Increased taxation on their own members
- B.Reduced access to raw materials for their members
- C.Subsidies, tax incentives, or supportive policies that benefit the broader industry they represent
- D.The elimination of their own industry entirely
Show the answer
C. Subsidies, tax incentives, or supportive policies that benefit the broader industry they represent
Trade associations may advocate for subsidies, tax incentives or supportive policies benefiting their industry.
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