What is the term for a formal linkage that occurs when a member of the board of directors of one company sits on the board of directors of another company?
A) joint venture
B) interlocking directorate
C) integration
D) indirect interlock

Question

Quizplus · Accepted Answer

The term for a formal linkage that occurs when a member of the board of directors of one company sits on the board of directors of another company is interlocking directorate. It is a common practice amongst large corporations and is regulated by antitrust laws to prevent monopolistic practices. The other options, joint venture and integration, refer to different forms of business collaboration, while indirect interlock is not a commonly used term.

What Is the Term for a Formal Linkage That Occurs