The goal of EU Competition Law includes preventing the formation of which of the following?

Study for the Financial Information Associate Certificate Test. Review with flashcards and multiple choice questions. Enhance your financial knowledge with hints and detailed explanations. Be prepared for your FIA exam!

The goal of EU Competition Law is fundamentally aimed at maintaining a fair and competitive market within the European Union. This includes taking action against practices that can lead to market dominance that is detrimental to healthy competition. By preventing the formation of cartels and monopolies, EU Competition Law seeks to ensure that no single entity or group can control the market to the detriment of consumers and other businesses.

Cartels are agreements between competing firms to limit competition by fixing prices, restricting output, or dividing markets, which effectively undermines the principles of a free market economy. Monopolies, on the other hand, occur when a single company dominates the market, limiting choices for consumers and potentially leading to price gouging. By addressing these issues, EU Competition Law aims to promote innovation, improve product quality, and maintain reasonable prices for consumers. It also enhances economic efficiency and encourages investment by creating a level playing field for all businesses.

The other choices, while they pertain to various aspects of economic activity, do not represent structures or formations that EU Competition Law directly aims to regulate in terms of promoting competition. For instance, limited partnerships in investment firms and consumer cooperatives do not inherently pose competition issues in the same way that cartels and monopolies do. Similarly

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