Rise of Industrial Capitalism (APUSH 6.6)

The nation's first BIG BUSINESS was....

• the timber industry

• railroads

• mining

• cotton exports

TRUE or FALSE: The federal government SUBSIDIZED (paid for) the growth of railroads by providing loans and free public lands to railroad companies

• True

• False

The growth of railroads can be credited with all of the following EXCEPT:

• the creation of four time zones across the continental U.S.

• the creation of the modern stockholder corporation

• setting a precedent for competing companies CONSOLIDATING into large corporations

• making it easier for small farmers to compete with big, corporate-owned farms (by shipping their goods faster)

By 1900, ____ giant railroad systems controlled 2/3 of the nation's railroads.

• 20

• 10

• 15

• 7

A ____________ is created when companies consolidate other businesses to the point where they DOMINATE the market and face little to no competition from other companies.

• monopoly

• trust

• laissez-faire

• communism

All of the following were business leaders who tried to create MONOPOLIES in their industries EXCEPT:

• Andrew Carnegie in the steel industry

• William Penn in the wheat industry

• J. P. Morgan in banking/finance

• John D. Rockefeller in the oil industry

___________ integration is when a company takes control of all its former competitors in a specific industry.

• horizontal

• vertical

A __________________ is a company created to own and control diverse companies. Ex: J. P. Morgan managed one of these to manage the various companies he'd acquired in industries like banking, rail transportation, and steel.

• holding company

• hedge fund

• trust

• small business

_________ integration is a process through which one company takes control of all stages of making a product. Ex: Carnegie Steel controlled coal mines, ore ships, steel mills, and the distribution system for their steel company to reduce costs, improve efficiency, and increase profits.

• vertical

• horizontal

A _________ is an organization or board that manages the assets of other companies. Ex: Under Rockefeller, Standard Oil became a _____ in which one board of trustees managed a combination of once-competing oil companies.

• trust

• holding company

• small business

• monopoly