The main objective of a trade association can best be described as promoting and protecting?

A. the product
B. common interest
C. the market
D. customer’s interest

Correct Answer:

Option B – common interest

Explanation

A trade association is a voluntary organization of independent business units in the same branch of industry, which conducts co-operatively activities aimed at improving the welfare of the group, which does not deprive its members of the power to make essential managerial decisions.

Trade associations are formed by businesses that are engaged in the same or similar trade. They are organized on a non-profit basis. Trade associations are formed for the protection and promotion of the business interests of their members.