Certification in Supplier Diversity Practice Exam

What organization was established to promote fair competition among businesses in the U.S.?

1. World Trade Organization

2. Federal Trade Commission

3. Small Business Administration

4. General Agreement on Tariffs and Trade

The correct answer is: Federal Trade Commission

The Federal Trade Commission (FTC) was established to promote fair competition among businesses in the U.S. Its primary purpose is to protect consumers and ensure a strong competitive market by enforcing laws against deceptive advertising, unfair business practices, and antitrust violations. By regulating and preventing anti-competitive behavior, the FTC helps maintain an environment where competition can thrive, ultimately benefiting consumers through lower prices, better quality products, and more choices. This focus on fair competition is crucial for a healthy economy, as it encourages innovation and entrepreneurship. Organizations such as the World Trade Organization and the General Agreement on Tariffs and Trade focus on international trade policies and agreements, rather than specifically promoting fair competition within the U.S. market. The Small Business Administration primarily supports the growth and development of small businesses through loans and educational resources, rather than directly addressing competition among businesses. Thus, the Federal Trade Commission is uniquely positioned to address and enforce competition laws to promote fairness in the business landscape.