Business combinations are a distinctive feature of modern commerce and industry. Business combinations are formal and informal combinations of business firms who associate together for protecting and promoting their common interests.
Chambers of Commerce and Trade Associations are two popular forms of business combinations.
Just as workers form trade unions to protect and promote their common interests, similarly businessmen form chambers of commerce and trade associations to protect and promote their mutual interests.
Need for forming chambers of commerce arises due to threat of trade unions, Governments interference in business, need for educating businessmen, sense of cooperation, need for services of specialists, need for creation of business opportunities, etc.