Rise of Giant Corporations Flash Cards

Front

What were most companies before the Civil War?

Back

Most companies were sole proprietorships or partnerships.

Front

What is a corporation?

Back

A corporation is a business with many owners, known as investors, shareholders, or stockholders.

Front

What is a share or stock?

Back

The part of a company you own. For publicly traded companies, it can be bought or sold at a stock market or stock exchange.

Front

What changed during the 2nd Industrial Revolution regarding company structures?

Back

The rise of corporations due to advantages like limited individual risk, easier access to capital, and easier expansion.

Front

What are the major advantages of corporations compared to sole proprietorships?

Back

Limited individual risk, easier to raise money quickly, and easier to expand the size of the business.

Front

What economic policies enabled the growth of large corporations during the 2nd Industrial Revolution?

Back

Laissez-faire economic policies.

Front

What is vertical integration?

Back

Buying other companies that does something your company needs

 

Front

What is horizontal integration?

Back

Buying another company that does the same thing your company does to eliminate competition.

Front

What is vertical integration?

Back

Buying another company that does something your company needs to produce or ship your product to reduce costs and increase profits or decrease product prices.

Front

What is corporate integration?

Back

When a company grows through the process of buying other companies