USH Chapter 9, Part C

Multiple Choice

Which of the following best describes a corporation as explained in the text?

• An organization owned by one person and operated as a partnership.

• An organization owned by many people but treated by law as though it were a single person.

• A business that cannot own property or pay taxes.

• A business that does not issue stocks or charters.

Multiple Choice

How did the rise of big businesses and corporations change the American economy after the Civil War?

• It led to the decline of factories and warehouses.

• Big businesses dominated the economy, operating vast complexes of factories, warehouses, offices, and distribution facilities.

• It reduced the number of jobs available.

• It made it harder for entrepreneurs to start new companies.

Multiple Choice

How did the ability to raise money from the sale of stock help corporations achieve economies of scale?

• It allowed corporations to invest in new technologies and increase efficiency.

• It forced corporations to reduce their workforce.

• It made corporations focus only on small-scale production.

• It required corporations to pay higher taxes.

Multiple Choice

What were the main reasons corporate leaders organized pools?

• To enhance market share, increase competition, and lower costs.
• To create monopolies, limit consumer choice, and boost market entry.
• To improve product quality, expand customer base, and raise prices.
• To stabilize prices, reduce competition, and increase profits.

Open Ended

Why did pools often fail?

Fill in the Blanks

Andrew Carnegie adopted the

process to make high quality steel in his company.

Multiple Choice

Which of the following best describes the difference between vertical and horizontal integration as practiced by business leaders like Carnegie and Rockefeller?

• Vertical integration involves owning all businesses needed for operation, while horizontal integration involves combining many firms in the same business.

• Vertical integration means buying out competitors, while horizontal integration means controlling supply chains.

• Vertical integration is only used in the steel industry, while horizontal integration is used in oil.

• Vertical integration focuses on marketing, while horizontal integration focuses on production.

Multiple Select

Select all statements that accurately describe trusts as explained in the slides.

• A trust allows one person to manage another's property.

• Trusts were a way to merge businesses without violating laws against owning other companies.

• Trustees always own the stock they manage.

• Trusts were used by Standard Oil to control other companies.

Multiple Choice

How the new incorporation law in New Jersey contributed to the rise of holding companies and the growth of big business in the United States?

• The law increased taxes on corporations, limiting their growth.
• It mandated stricter regulations on business operations.
• The law eliminated the need for corporate charters entirely.
• The incorporation law in New Jersey enabled the rise of holding companies and the growth of big business by reducing restrictions and costs for incorporation.

Multiple Choice

How did department stores and chain stores change the way products were sold in the United States during the late 1800s and early 1900s?

• They allowed customers to buy products directly from factories.

• They brought a variety of products together in one place and focused on low prices.

• They only sold luxury goods to wealthy customers.

• They eliminated the need for advertising.