Rise of Big Business during the Gilded Age Quiz

What is a corporation?

• A business that sells stock to raise capital

• A business that controls the means of production

• A group of businesses run together by a board of trustees

• A business that holds stock in other companies

What is the purpose of selling stock in a corporation?

• To streamline manufacturing

• To control the marketplace

• To eliminate competition

• To generate more revenue

What advantage did corporations gain through economies of scale?

• Decreased overall cost of manufacturing

• Increased competition

• Lowered stock prices

• Reduced production capabilities

What is horizontal integration?

• Holding stock in other companies

• Forming a group of businesses run by a board of trustees

• Controlling the means of production

• Expanding within the marketplace by putting competition out of business

What advantage did vertical integration provide to businesses?

• Eliminated competition and controlled the marketplace

• Lowered costs and increased production

• Streamlined manufacturing and reduced costs

• Generated more revenue and increased profits

What is a monopoly?

• When a group of businesses collaborate to eliminate competition

• When a business sells stock to raise capital

• When a business holds stock in other companies

• When one business controls the majority of an industry

Why are monopolies considered bad?

• They can innovate and remain competitive

• They can generate more revenue and profits

• They can lower costs and increase production

• They can raise prices and eliminate competition

What is a trust?

• A group of businesses run together by a board of trustees

• A business that controls the means of production

• A business that holds stock in other companies

• A business that sells stock to raise capital

What is the purpose of forming a trust?

• To expand within the marketplace by putting competition out of business

• To eliminate competition and control the marketplace

• To streamline manufacturing and reduce costs

• To generate more revenue and increase profits

What is a holding company?

• A business that controls the means of production

• A group of businesses run together by a board of trustees

• A business that holds stock in other companies

• A business that sells stock to raise capital