Topic 1 Lesson 2 Review Quiz

Which is a major advantage of the corporate form of business?

• The owners have an unlimited liability.
• The company has a limited life.
• Ownership is easily transferred from one party to another.
• The owners are guaranteed a profit. 

Advantages of this type of business include: selling stock to raise money and limited liability.

• Sole Proprietorship

• Partnership

• Corporation

• Franchise

In some states, it was against the law for one company to own stock of another company. So industrial leaders, like Rockefeller, formed new organizations called _____________.

• partnerships

• corporations

• trusts

• monopolies

A _________ is a group of companies that work together to control prices and supply in order to maximize profit. It is usually seen as unfair to the consumers.

• cartel

• corporation

• gang

• monopoly

This business strategy involves buying up competitors, or forcing them out of business, to gain control of an industry. It was popularized by John D. Rockefeller.

• Horizontal Integration

• Vertical Integration

• Monopoly

• Trust

This business strategy involves buying up companies that produce resources, companies that use those resources to manufacture products, and companies that use those products to develop large projects. It was popularized by Andrew Carnegie.

• Horizontal Integration

• Vertical Integration

• Monopoly

• Trust

Social Darwinism is the theory that

• Americans will someday rule the industrial world

• The strongest people make the best leaders

• One day, animals will eventually replace people at the top of the power order

• Poor people are genetically inferior to rich people.

In this political cartoon, who is in charge of the Senate?

• The US Senators
• the US Constitution
• The owners of monopolies/ industrialists
• the American people

The sometimes unethical business practices of some business owners led them to be given this nickname

• Banksters

• Tycoons

• Fat Cats

• Robber Barons