AH Topic 2.2 Big Business Rises

What is a corporation?

• A small business owned by one person

• A government-run enterprise

• A group ownership allowing people to buy shares

• A temporary partnership of merchants

What was the goal of forming a cartel?

• To reduce production costs

• To improve working conditions

• To limit production and keep prices high

• To regulate labor unions

Which business strategy is John D. Rockefeller most associated with?

• Vertical integration

• Horizontal integration

• Social Darwinism

• Antitrust regulation

What does horizontal integration involve?

• Buying companies that make similar products

• Hiring more employees at lower wages

• Owning every stage of production

• Focusing on global marketing

A monopoly exists when a company:

• Partners with the government

• Has competition from multiple firms

• Controls an entire product or service

• Follows fair trade practices

What is a trust in the context of business?

• A legal document for patenting ideas

• A government agency to regulate trade

• A method for combining companies under one board

• A union of skilled workers

Andrew Carnegie is best known for:

• Running Standard Oil

• Inventing the assembly line

• Creating the first major airline

• Leading the steel industry

Vertical integration is when a company:

• Merges with foreign competitors

• Controls all phases of production

• Hires workers from different countries

• Focuses on advertising strategies

Social Darwinism argued that:

• The wealthy should help the poor

• Government must regulate capitalism

• Economic success was a sign of being “fit”

• All people should receive equal wages

Which law created the Interstate Commerce Commission (ICC)?

• Sherman Antitrust Act

• Homestead Act

• Interstate Commerce Act of 1887

• Federal Reserve Act