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Which provision requires large business houses to seek government permission for expansion, merger, or starting new undertakings?
- a)Concentration of Economic Power.
- b)Monopolistic Trade Practices.
- c)Restrictive Trade Practices.
- d)Foreign Collaboration.
Correct answer is option 'A'. Can you explain this answer?
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Which provision requires large business houses to seek government perm...
Concentration of Economic Power:
The provision that requires large business houses to seek government permission for expansion, merger, or starting new undertakings is known as Concentration of Economic Power. This provision aims to prevent the abuse of power by large corporations and ensure fair competition in the market.
Why Government Permission is Required:
1. Prevention of Monopoly: By seeking government permission, large business houses are required to justify their expansion plans and demonstrate that they will not create a monopoly in the market.
2. Protection of Consumer Interests: Government oversight helps protect consumers from unfair practices such as price manipulation or reduced choices resulting from mergers or acquisitions.
3. Promotion of Competition: By regulating the expansion of large corporations, the government encourages a competitive market environment where smaller businesses can thrive.
Process of Seeking Permission:
1. Application Submission: Large business houses need to submit detailed proposals to the government outlining their expansion plans and the potential impact on the market.
2. Assessment by Authorities: Government authorities review the applications to ensure compliance with regulations and assess the potential consequences of the proposed expansion.
3. Approval or Rejection: Based on the assessment, the government may approve or reject the application, imposing conditions if necessary to safeguard competition and consumer interests.
Conclusion:
The Concentration of Economic Power provision plays a crucial role in regulating the activities of large business houses and promoting a competitive market environment. By requiring government permission for expansion, merger, or starting new undertakings, this provision helps prevent the concentration of economic power in the hands of a few entities and fosters fair competition for the benefit of consumers and smaller businesses.
The provision that requires large business houses to seek government permission for expansion, merger, or starting new undertakings is known as Concentration of Economic Power. This provision aims to prevent the abuse of power by large corporations and ensure fair competition in the market.
Why Government Permission is Required:
1. Prevention of Monopoly: By seeking government permission, large business houses are required to justify their expansion plans and demonstrate that they will not create a monopoly in the market.
2. Protection of Consumer Interests: Government oversight helps protect consumers from unfair practices such as price manipulation or reduced choices resulting from mergers or acquisitions.
3. Promotion of Competition: By regulating the expansion of large corporations, the government encourages a competitive market environment where smaller businesses can thrive.
Process of Seeking Permission:
1. Application Submission: Large business houses need to submit detailed proposals to the government outlining their expansion plans and the potential impact on the market.
2. Assessment by Authorities: Government authorities review the applications to ensure compliance with regulations and assess the potential consequences of the proposed expansion.
3. Approval or Rejection: Based on the assessment, the government may approve or reject the application, imposing conditions if necessary to safeguard competition and consumer interests.
Conclusion:
The Concentration of Economic Power provision plays a crucial role in regulating the activities of large business houses and promoting a competitive market environment. By requiring government permission for expansion, merger, or starting new undertakings, this provision helps prevent the concentration of economic power in the hands of a few entities and fosters fair competition for the benefit of consumers and smaller businesses.
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Which provision requires large business houses to seek government perm...
The provision related to concentration of economic power requires large business houses to seek government permission for expansion, merger, amalgamation, or starting new undertakings.
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Which provision requires large business houses to seek government permission for expansion, merger, or starting new undertakings?a)Concentration of Economic Power.b)Monopolistic Trade Practices.c)Restrictive Trade Practices.d)Foreign Collaboration.Correct answer is option 'A'. Can you explain this answer?
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