A corporation is a business that sells __________in order to raise __________.
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A monopoly is when _______ business controls the majority of an industry.
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What emerged as the dominant business structure in the Gilded Age?
Conglomerate
Proprietorship
Partnership
Corporation
Laissez-faire attitudes towards business led to tremendous growth in corporations during the Gilded Age.
True
False
Stock is technically ownership in a company.
True
False
If a person purchased stock in the Standard Oil company, they would become:
a taxpayer
part owner
rich
the head of the company
Standard Oil will take the money they raised by selling stock and invest it back into their company.
True
False
If Standard Oil makes a profit from selling oil, they invest all of it back into their company to buy more things that they need.
True
False
What happens to the overall cost of manufacturing when a company is able to produce more goods at a faster rate?
The cost of manufacturing decreases
The cost of manufacturing increases
The cost of manufacturing stays the same
There is no impact on the cost of manufacturing
Smaller companies who produce fewer goods are able to sell those goods for cheaper rates than larger companies who produce more goods.
True
False
What generally happens to smaller businesses who can't compete with large businesses like Standard Oil?
They generally increase the price of their stock
They generally go out of business
They generally become more powerful than the large business
What strategy did Standard Oil use to drive their competition out of business?
They used violence and intimidation to threaten other business owners
They continuously changed the product that they were selling so that other businesses could not keep pace
They temporarily made their prices so low that the other businesses couldn't compete
They raised their prices so that they made more money and could therefore buy out other businesses
When a company expands across the marketplace by putting other companies out of business, it is known as horizontal integration.
True
False
What can a company like Standard Oil do once they drive their competition out of business?
Begin selling different products
Raise their prices back up again
Go out of business
Lower their prices below the cost of manufacturing
When a business owns and controls all of the materials needed to make a final product, it is known as vertical integration.
True
False
One of the benefits of vertical integration is that business owners no longer have to pay someone else for all the materials that they need.
True
False
Which form of integration is it when corporations expand and take over the businesses that compete against them?
Vertical Integration
Horizontal Integration
Standard Oil was considered a monopoly because it controlled 90% of the country's oil supply.
True
False
Check off all of the following that are true of an economy that allows monopolies.
One company dominates an entire industry.
There is little incentive to innovate or create better products.
Prices are higher because there is no competitition.
Many new and creative products are introduced to the market.
Prices are lower because there is no competitition.
Many companies exist within the same industry.
Companies are very competitive with each other.
Which of the following is the best definition of the word "trust" when talking about the Gilded Age economy?
A group of businesses in the same industry that work together to eliminate their competition.
A group of businesses that compete with each other and refuse to work together.
A special form of corporation with very few stockholders.
A corporation that has eliminated all competition in the industry and now has 100% of the marketplace.
Portraying Standard Oil as an octopus was done to showcase how much influence this company had over the federal government and how dangerous this influence was.
True
False
During the Gilded Age, the government passed many laws to make sure that monopolies and trusts didn't become more powerful than the average people.