How did guilds influence business practices in medieval towns?

• A. Guilds promoted free market competition by removing all restrictions on trade.
• B. Guilds discouraged specialization and craftsmanship in local industries.
• C. Guilds regulated the quality and prices of goods, ensuring fair competition among members.
• D. Guilds prevented merchants from forming any business associations.

Answer: (C)

Verified step by step guidance

1. Understand the historical context of guilds in medieval towns: Guilds were associations of artisans or merchants who controlled the practice of their craft in a particular town.
2. Recognize the role of guilds in regulating business practices: Guilds set standards for the quality of goods produced and controlled prices to maintain fairness and protect their members' interests.
3. Analyze how guilds influenced competition: By regulating quality and prices, guilds ensured fair competition among members rather than promoting unrestricted free market competition.
4. Consider the impact on specialization and craftsmanship: Guilds often encouraged specialization and high craftsmanship by setting strict rules and training apprentices within their trade.
5. Conclude that guilds did not prevent business associations but rather were themselves business associations that structured trade and commerce in medieval towns.