Rise of Big Business

What is a corporation?

• A government agency that regulates businesses

• A type of business that operates in multiple countries

• A small business owned by a single individual

• A form of group ownership where a number of people share ownership of a business

What is a monopoly?

• A business that operates in multiple industries

• Complete control of a product or service

• A giant company with lower production costs

• A group of businesses that agree to limit production

What is a cartel?

• An arrangement where businesses making the same product agree to limit production

• A government agency that regulates corporations

• A type of business that operates internationally

• A group of businesses that merge to form a giant company

What is horizontal integration?

• Gaining control of different businesses that make up all phases of a product's development

• Consolidating many firms in the same business to create a giant company

• Working to eliminate competition by forming cartels

• Forming a group ownership known as a corporation

What is vertical integration?

• Gaining control of different businesses that make up all phases of a product's development

• Consolidating many firms in the same business to create a giant company

• Forming a group ownership known as a corporation

• Working to eliminate competition by forming cartels

What does the theory of Social Darwinism justify?

• Government regulation of trusts

• Discrimination based on race or ethnicity

• Charitable acts towards the less fortunate

• The survival of the most economically fit in the American capitalist society

What did the Sherman Antitrust Act do?

• Promoted the formation of cartels

• Outlawed any trust that operated in restraint of trade or commerce among several states

• Encouraged vertical integration

• Supported the development of efficient business practices

Why did consumers, workers, and the federal government feel that trusts, cartels, and monopolies gave powerful businesses an unfair advantage?

• Because they created more job opportunities

• Because they supported the development of technology

• Because they limited competition and kept prices high

• Because they promoted fair trade practices

What positive impact did business leaders have on the nation's economy?

• Provided jobs through factories, steel mills, and railroads

• Created competition through the formation of cartels

• Reduced costs through vertical integration

• Supported the development of efficient business practices

What is the main reason why the federal government gradually became involved in regulating trusts?

• To promote the formation of cartels

• To support the development of efficient business practices

• To encourage vertical integration

• To regulate and promote fair competition in business and prevent monopolistic practices