Jumpy Castles, Inc.One company, operating independently

Jumpy Castles, Inc.Bouncy Houses, LLC

Now we have two companies making novelty apparati…Each will COMPETE by lowering prices or attackingthe other in the media, etc. to gain market share

Jumpy Castles, Inc.Bouncy Houses, LLC

Now we have FOUR companies making novelty apparati…This is getting hectic, and companies are slashing prices so muchthat they aren’t making any moneyWhat can they do?

Death Trap Ent.

Scary Funtimes Co.

They could merge and form one company…but who would be in charge? That could causesome big problems…

Bouncy-Jumpy Traps Corp.

Jumpy Castles, Inc.Bouncy Houses, LLC

Death Trap Ent.

Scary Funtimes Co.

Let’s Makea Deal!

Board of Directors, Jumpy Castles, Inc.

Jumpy Castles, Inc.CEO

Bouncy Houses, LLCCEO

Death Trap Ent.CEO

Scary Funtimes Co.CEO

What’s wrong with this picture?

A Trust

• Simply put, businesses that usually compete agree to work together to control how much they make and how much they sell it for– They can charge as much as they want, since all

the producers are charging the same price (no cheaper options)

– Works well in industries of necessity, like food or transportation, or jumpy castles (things you can’t just stop buying)