An Age of Big Business and Corporations

Pittsburgh became known as the steel capital due to the establishment of large steel mills in the region, particularly in the 1870s.

Andrew Carnegie was a key figure in steelmaking who built a steel plant near Pittsburgh and dominated the steel industry by 1890.

Vertical integration involved Carnegie acquiring companies at all stages of production, from raw materials to transportation.

<p>The Bessemer process allowed Carnegie to produce steel more efficiently and at a lower cost, meeting the growing market demand.</p> Signup and view all the answers

<p>Carnegie's strategies, particularly his control over the entire steel production process, made it difficult for other companies to compete.</p> Signup and view all the answers

<p>Edwin L. Drake's oil strike.</p> Signup and view all the answers

<p>John D. Rockefeller.</p> Signup and view all the answers

<p>Horizontal integration.</p> Signup and view all the answers

<p>A group of companies managed by a single board of trustees.</p> Signup and view all the answers

<p>He created a monopoly.</p> Signup and view all the answers

<p>Steel.</p> Signup and view all the answers

<p>Cleveland, Ohio.</p> Signup and view all the answers

<p>They traded their stock for Standard Oil stock.</p> Signup and view all the answers

<p>Edwin L. Drake drilled the first successful oil well in Titusville, Pennsylvania, leading to significant oil production.</p> Signup and view all the answers

<p>The three factors of production are land, labor, and capital.</p> Signup and view all the answers

<p>They allowed business leaders to utilize natural resources effectively, transitioning the economy from farming to industry.</p> Signup and view all the answers

<p>Entrepreneurs are individuals who start businesses and need to raise capital to fund their operations.</p> Signup and view all the answers

<p>A corporation is a legally defined organization that allows many owners and can raise capital through selling stock.</p> Signup and view all the answers

<p>One third of the nation's steel.</p> Signup and view all the answers

<p>Carnegie Hall.</p> Signup and view all the answers

<p>Selling stock raises funds that can be used to buy raw materials, equipment, and cover operational costs.</p> Signup and view all the answers

<p>The use of money to benefit the community.</p> Signup and view all the answers

<p>Shareholders are individuals who invest in a corporation by buying stock and receive dividends if the company is profitable.</p> Signup and view all the answers

<p>Railroads were the first businesses to form corporations.</p> Signup and view all the answers

<p>A holding company could gain power over multiple companies by buying their stock, facilitating the trend toward monopolies.</p> Signup and view all the answers

<p>The Sherman Antitrust Act.</p> Signup and view all the answers

<p>Corporations were under no pressure to improve their products or services.</p> Signup and view all the answers

<p>The University of Chicago.</p> Signup and view all the answers

<p>More than 2,000 libraries.</p> Signup and view all the answers

<p>Horizontal integration is the process of acquiring or merging with competitors to increase market share. Rockefeller used it to eliminate competition and control a significant portion of the oil industry.</p> Signup and view all the answers

<p>He drove competitors out of business by lowering oil prices, making it difficult for them to compete profitably.</p> Signup and view all the answers

<p>Rockefeller pressured customers by offering lower oil prices and influenced railroads through secret deals that secured rebates and discounts for transporting his oil.</p> Signup and view all the answers

<p>The formation of a trust allowed Rockefeller to consolidate control over multiple companies, making decisions collectively to eliminate competition.</p> Signup and view all the answers

<p>A monopoly is a market structure where a single company dominates the entire market for a product or service. Rockefeller created one by acquiring numerous oil companies to eliminate competition and control prices.</p> Signup and view all the answers

<p>Secret deals and networking allowed Rockefeller to forge beneficial relationships with influential figures, giving him a competitive edge.</p> Signup and view all the answers

<p>Rockefeller's pricing strategies led to aggressive competition among oil suppliers, causing many to lower their prices or exit the market.</p> Signup and view all the answers

<p>Rebates from railroads lowered transportation costs for Rockefeller, allowing him to offer competitive prices.</p> Signup and view all the answers

<p>Rockefeller's strategies initially led to lower prices for consumers, but ultimately resulted in less competition and higher prices.</p> Signup and view all the answers

<p>Rockefeller's competitive practices reflected the principles of capitalism by promoting innovation, efficiency, and market dominance through competition.</p> Signup and view all the answers