☀️ C2 - GILDED AGE BUSINESS: (MUST-DO)

What emerged as the dominant business structure in the Gilded Age?

Laissez-faire attitudes towards business led to tremendous growth in corporations during the Gilded Age.

Stock is technically ownership in a company.

If a person purchased stock in the Standard Oil company, they would become:

Standard Oil will take the money they raised by selling stock and invest it back into their company.

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.

What happens to the overall cost of manufacturing when a company is able to produce more goods at a faster rate?

Smaller companies who produce fewer goods are able to sell those goods for cheaper rates than larger companies who produce more goods.

What generally happens to smaller businesses who can't compete with large businesses like Standard Oil?

What strategy did Standard Oil use to drive their competition out of business?

When a company expands across the marketplace by putting other companies out of business, it is known as horizontal integration.

What can a company like Standard Oil do once they drive their competition out of business?

When a business owns and controls all of the materials needed to make a final product, it is known as vertical integration.

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.

Which form of integration is it when corporations expand and take over the businesses that compete against them?

Standard Oil was considered a monopoly because it controlled 90% of the country's oil supply.

Check off all of the following that are true of an economy that allows monopolies.

Which of the following is the best definition of the word "trust" when talking about the Gilded Age economy?

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.

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.