Forms of Business Combinations:Form # 1. Associations:These are voluntary organizations of traders and businessmen formed to protect and promote their common interests through collective efforts. They act as self- regulators of trading policies and practices. Associations are of two categories:Trade Association; andChambers of Commerce. A. Trade Associations: Trade Association may be defined as a voluntary organization for mutual protection or advantage of independent enterprises producing or distributing similar goods or services. B. Chamber of Commerce: A Chamber of Commerce is an association of merchants, financiers, manufacturers, and others engaged in business in a particular locality or region for promoting the general commercial interests of all the members. Form # 2. Federations:Federation means an association of firms engaged in the same business with a formalized agreement to follow certain policies in common so as to reduce the intensity of wasteful competition in the respective business line. It is, in other words, an alliance of competing firms into a federal framework. Federations are of two types:Pools andCartels. A. Pools: Pool is a horizontal type of combination intended to regulate the market price by the collective agreement on factors that influence the price. B. Cartel: A cartel is an association of independent firms agreeing amongst themselves to regulate their output, divide the market, centralize the sales and determine common pricing policies that would be of maximum benefit to all the members. Features of Cartels:It is a horizontal business combination, i. e. , a union of firms engaged in the same business. Its members retain their identity and autonomy in their day-to-day operations. It has a federal character whereby its members agree to abide by common decisions on specified matters taken by the central organization,Cartel agreement may provide for the regulation of output to be produced by the members as per estimated demand potential. Systematic allocation of the market on the agreed basis among the members. Formation of central agency, that is, syndicate to assemble the output of the member firms and sell them at remunerative prices. Form # 3. Complete consolidationComplete consolidation occurs when two or more concerns combine to trans­fer their assets and liabilities to a new company or when one company absorbs another concern by outright purchase of its business. Therefore, Cartel is a form of Federation.