The Rise of Big Business

What is a corporation?

• an organization owned by many people but treated by law as though it is a person

• an organization owned by many people but without the rights of a person

• An organization that sells more than $1million in products each year

• An organization run by an American or multiple Americans

Why do corporations issue stock?

• to raise money

• to advertise their products

• to squash competition

• corporations cannot issue stock

What are fixed costs in business?

• costs a company pays even if it is not operating

• costs a company pays only when it is operating

• cost a company pays to repair their machines

• costs a company pays to ship its products

How were large corporations able to operate in poor economic times? (pick two)

• produce more goods at a lower cost

• cutting prices to increase sales

• shut down when they are not selling products

• large corporations cannot operate during poor economic times

How did large corporations achieve economies of scale?

• lowering the cost of manufacturing by producing goods quickly in large quantities

• raising the cost of manufacturing by producing goods quickly in large quantities

• reducing the size of manufacturing facilities

• by advertising new products to international customers

Carnegie became one of the wealthiest people ever by selling what product?

• oil

• steel

• gasoline

• wheat

What is vertical integration of a company?

• when a company owns all of its suppliers

• when a company buys all it its competitors

What is horizontal integration of a company?

• when a company owns all of its suppliers

• when a company buys all it its competitors

Rockefeller became one of the wealthiest people ever by selling what product?

• oil

• steel

• gasoline

• wheat

What is a holding company?

• A company that only owns the stock of other companies

• A company that produces and sells commodities

• A company that transports items

• A company that stores items for individuals