What Is The Difference Between Trust And Cartel?

Question

What Is The Difference Between Trust And Cartel?

3 Answers

Answer Question

Answer 1

In trust, members lose their independence but in cartel, members retain their independence.
Trust is a complete merge and certificates are issued but cartel is voluntary and members can withdraw and certificate is not issued.

Answer 2

In a Trust, members lose their independence but in cartel, members retain their independence.
Trust is a complete merge and certificates are issued but cartel is voluntary and members can withdraw and a certificate is not issued.

Answer 3

Difference between trust and cartel
Formation:
The establishment of trust is quite difficult but for cartel it is comparatively easy.
Board of trustee:
The companies forming a trust transfer much of the stocks to a board of trustees. The trustee in return issue receipt for the stock called trust certificates. On the other hand the competing firms form an association which is known as joint selling agency syndicate of cartel. The cartel does not issue any stock certificate to the member companies.

Control over management
The trust plan, it manages and controls and affairs of the company in the best interest of members companies. The cartel controls the over production and sales of goods and tries to secure a degree of monopoly. The internal management remains in the hands of the company.
Stable combination
Trust is the stable combination and a member cannot withdraw from it easily. The cartel is a loose form of combination and a member can easily come out of it.
Type of combination