Topic 2.2 - Corporations and the Rise of Big Business

Front

What was the main reason for the rise of big business in the United States?

Back

Investment of private financial resources

Front

What is a corporation?

Back

A form of group ownership where multiple people share the ownership of a business.

Front

What are the economic advantages of being a big business?

Back

Lower cost per unit as volume increases, Larger production facilities for increased volume, Bulk pricing of raw materials.

Front

What is horizontal integration?

Back

The consolidation of many firms in the same business

Front

What is vertical integration?

Back

The control of different businesses involved in all stages of manufacturing a product

Front

What is the Sherman Antitrust Act?

Back

A law that outlawed any trust that operated in restraint of trade or commerce among the several states.

Front

What is Social Darwinism?

Back

The theory that wealth is a measure of one's inherent value

Front

What was the purpose of the Interstate Commerce Commission?

Back

To monitor railroad shipping rates

Front

What were some of the advantages of big business according to its supporters?

Back

Creation of jobs for a growing labor force, Lower prices for consumers, Stimulation of innovation and economic growth.

Front

What were some of the criticisms of big business?

Back

Elimination of competition and unfair business practices, Poor wages and working conditions for workers, High prices set by monopolies and cartels.