READING CHECK || "The Evolution of Corporate Empires"

From 1865-1890, advances and developments in what TWO AREAS OF THE ECONOMY allowed businesses to begin selling their goods across the entire United States? This led to the development of large corporations, such as Standard Oil and Carnegie Steel. Please select BOTH correct answers.

• the development of a nationwide transportation network
• advancements in communications technology
• improvements in meatpacking efficiency and sales
• advancements in land management made farmland more productive
• development of a more cost-effective process to refine crude oil into consumer products

According to author and historian Robert W Cherny, Andrew Carnegie "organized his company in a new way that changed how business was done". What was this NEW METHOD of conducting business called?

• vertical integration
• horizontal integration
• monopolies
• "corporate trust" model

According to the Cherny, what TWO ADVANTAGES did "vertical integration" provide Carnegie Steel that competitors did not have? Please select BOTH correct answers.

• a steady flow of the supplies needed to make steel
• prices that were predictable for supplies needed to make steel
• a method of transporting goods across the country
• more iron ore was available to Carnegie Steel than its competitors
• it provided Carnegie Steel with new techniques that produced steel faster and more cheaply

Which "Titan of Industry" owned the Stand Oil Company? Many of his critics referred to him as a "robber baron" due to his price-fixing within the industry.

• Andrew Carnegie
• John D. Rockefeller
• E.L. Godkin
• José Valdèz

In order to gain "vertical integration" of the oil industry, Standard Oil had to control which of these parts of the oil production process? Please select ALL correct answers.

• oil fields where crude oil was collected
• pipelines to carry crude from the oil fields to its refineries
• oil refineries where crude oil was process into usable fuel
• tanker ships and railroad lines to ship its products to consumers
• None of these answers are correct.

When ONE company "controls the entire market for a good or product", we refer to this market by which TERM?

• it is known as a "monopoly"
• it is referred to as "vertically integrated"
• it is referred to as "horizontally integrated"
• it is known as an "inflationary market"

Led by "trust-busters", such as Theodore Roosevelt, the federal government began to regulate large corporations in the 1890s. Standard Oil was broken into 34 separate companies. Which of these modern companies was once part of Standard Oil?

• British Petroleum
• Sinclair
• Phillips 66
• Chevron

According to the article, what are the NEGATIVE EFFECTS of the development of a "monopoly" in any given business sector?

• Consumers are forced to pay MUCH more than necessary.
• Smaller businesses were wiped out and forced to close.
• Monopolies are able to have influence in politics, protecting their position.
• The federal government is forced to enact regulations that control the size of businesses.
• Some monopoly owners tried to help small businesses grow, along with their own corporations.

In 2012 Facebook purchased Instagram, this is an example of

• A trust

• Laissez Faire

• Horizontal Integration

• Vertical Integration

What is the difference between vertical and horizontal integration?

• Vertical integration involves merging with competitors, while horizontal integration involves controlling all production stages

• Vertical integration involves controlling all production stages, while horizontal integration involves merging with competitors

• Both involve controlling all production stages

• Both involve merging with competitors

Answer explanation

Vertical integration means controlling all production stages, such as supply and distribution, while horizontal integration refers to merging with competitors to increase market share. Thus, the correct choice highlights this distinction.

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DOK Level 2: Skill/Concept