Rise of Big Business in American History

What is a corporation?

• A business that sells stock to raise capital

• A business that produces goods at a faster rate

• A business that controls the majority of an industry

• A business that collaborates with other businesses

What is the purpose of selling stock in a corporation?

• To generate more revenue

• To eliminate competition

• To control the marketplace

• To lower production costs

What advantage did corporations gain through economies of scale?

• Decreased manufacturing costs

• Increased competition

• Higher profits

• Greater innovation

What is horizontal integration?

• Expanding within the marketplace by putting competition out of business

• Controlling the means of production

• Lowering production costs

• Collaborating with other businesses

What is vertical integration?

• Owning all the materials needed for production

• Controlling the marketplace

• Eliminating competition

• Lowering production costs

What is a monopoly?

• When one business controls the majority of an industry

• When businesses collaborate to control the marketplace

• When businesses eliminate competition through horizontal integration

• When businesses own stock in other companies

Why are monopolies considered bad?

• They can raise prices drastically

• They encourage innovation

• They benefit consumers

• They promote fair competition

What is a trust?

• A group of businesses run together to eliminate competition

• A business that holds stock in other companies

• A board of trustees that controls multiple businesses

• A collaboration between businesses to fix prices

What is a holding company?

• A business that holds stock in other companies

• A group of businesses run together to eliminate competition

• A board of trustees that controls multiple businesses

• A collaboration between businesses to fix prices

What did the political cartoons symbolize about the power of monopolies?

• Control over government and the marketplace

• Innovation and competition

• Fair business practices

• Wealth distribution among the people