Business Concepts and Antitrust Laws

The video explores the rise of big business during America's Industrial Revolution, focusing on capitalism, entrepreneurship, and the formation of corporations. It discusses how figures like Rockefeller and Carnegie used strategies like vertical and horizontal integration to create monopolies. The government's laissez-faire approach allowed these practices until the Sherman Antitrust Act was introduced to regulate monopolies.

What is the primary driver of a capitalist market?

• Government regulations

• Entrepreneurial spirit

• Supply and demand

• Monopolistic practices

Who are the individuals that take risks to start new businesses?

• Entrepreneurs

• Board of directors

• Government officials

• Stockholders

What is a key advantage of forming a corporation?

• Reducing production costs

• Eliminating competition

• Raising money through stock sales

• Avoiding taxes

Which company did John D. Rockefeller establish?

• Standard Oil

• Facebook

• Carnegie Steel

• AT&T

What is the term for when one company controls an entire industry?

• Cartel

• Monopoly

• Syndicate

• Oligopoly

What is vertical integration?

• Owning all stages of production

• Merging with competitors

• Reducing workforce

• Setting high prices

How did Standard Oil use horizontal integration?

• By acquiring competitors

• By lowering production costs

• By increasing supply

• By diversifying products

What was the government's approach to business during the Industrial Revolution?

• Strict regulation

• Laissez-faire

• Heavy taxation

• Subsidization

What was the purpose of the Sherman Antitrust Act?

• To regulate stock markets

• To break up monopolies

• To support small businesses

• To promote monopolies

Which company was broken up in the 1980s under antitrust laws?

• Standard Oil

• Carnegie Steel

• Microsoft

• AT&T