QS Study

Types of Pool Business Combination

A pool means a working agreement that is based upon a definite contract is usually in writing and frequently provides penalties for violation of the terms and conditions of the agreement. A pool is formed to control the market volume of production or prices. It can be defined as a union of different companies in the same or similar arena of business.

A pool is a combination of firms operating in the similar field of business with an agreement formed for controlling market price. Generally, pools are two types. These are:

Simplex pool: Simplex pools means that pools providing for the adoption of one policy, such as price only.

Duplex pool: Duplex pools means that pools which contain two or more policies such as prices and output pools.

According to the formation of pools may be different types. These are:

  • Output pools: The participants of the pools fix the amount of production for each industry these types of pools are called output pool. Organizations that one involved with pool cannot produce more or less against that fixed amount.
  • Price pool: Price pools mean an agreement for fixing prices, the involving organizations with pool involve a more complex arrangement for determining prices and its enforcement.
  • Market pool: Pools that are formed to divide the markets for the mutual benefit of the members are known as market pools.
  • Traffic pool: The transportation agency of products or passengers sometimes determine different root for eliminating competition. These types of pools are called traffic pools. Here pool fixes the rest of transportations according to the distance.
  • Profit pools: In profit pools, all of the profit of organizations involved with pool are collected then divided it among the members.
  • Patent pool: A patent pool is an exchange of patent rights between two or mow owners of patents. It may make it possible for a manufacturer to use a great many; patents in return for the use of a limited number of patents owned by him. Patent pools are made to avoid controversies between owners of patents with regard to the use of the same patent.
  • Income pool: The organizations that are engaged with pool collected total income of every organization and subtract the expenses then they divide it among the members proportionately.
  • Mixed Pool: Income, Profit, Traffic, output, market etc are the way to control product price and market competition. The pool which is engaged to do this task called mixed pool.

These are the main kinds of the pool. The types of the pool may be different for it perspective. But in our country mainly there types of pools one found.