1. What is it? B. How did it help businesses such as the Carnegie Company and tycoons like Andrew Carnegie?
1. Vertical integration
A. Vertical Integration is the process in which one buys their own suppliers.
B. This helped businesses such as the Carnegie Company because one could buy everything they needed, from themselves, so they could make everything they need super cheap and very easy for themselves to obtain.
2. Horizontal integration
A. Horizontal integration is the process in which companies by out their competitiors or companies with similar products.
B. This helped businesses such as the Carnegie Company because it eliminated competitors and made it so that one company could sell one product, and everyone would have to go to that one company for the product.
3. Social Darwinism
A. This was basically a philosophy stated by some businesses that it was okay to be the only company selling one product, similar to Darwin's theories of survival of the fittest. If one was able to have a good business, then why should it be tampered with.
B. This helped businesses such as the Carnegie Company because it made it so that one could have a monopoly and it be legal; that it was alright with everyone to have a big business and put other ones that were not adequit out of buisness, therefore also helping the bigger business because it gets rid of competitors like the horizontal intregration.
4. Monopoly
A. When one has "complete control over it's industry's production, wages, and prices"
B. This helped businesses such as the Carnegie Company because one could have a monopoly. If one had a monopoly, they basically had total control over one thing, meaning there were no other places to buy the item, some one person could over charge and get even more rich from the over-pricing of one item.
5. Holding company
A. A holding company is something that can be set up that is a "corporation that did nothing but buy out the stock of other companies"
B. This helped businesses such as the Carnegie Company because again, it would eliminate competitors so there would onloy be one place to by a certain product, and the product would most likely be overpriced because there is only one place to get it. Inturn, this had a positive effect on a company because they could make more money.
6. Trust
A. A trust is something in which someone gives their stocks over to a group of trustees, who ran seperate companies as one large cooperation.
B.This helped businesses such as the Carnegie Company because the bigger companies got some of the profits made by the trusts, so they were able to make more money for their company.
7. The perception of tycoons as “robber barons”
C. How did it harm businesses such as Standard Oil and tycoons like John D. Rockefeller?
B. This helped businesses such as the Carnegie Company because one could have a monopoly. If one had a monopoly, they basically had total control over one thing, meaning there were no other places to buy the item, some one person could over charge and get even more rich from the over-pricing of one item.
5. Holding company
A. A holding company is something that can be set up that is a "corporation that did nothing but buy out the stock of other companies"
B. This helped businesses such as the Carnegie Company because again, it would eliminate competitors so there would onloy be one place to by a certain product, and the product would most likely be overpriced because there is only one place to get it. Inturn, this had a positive effect on a company because they could make more money.
6. Trust
A. A trust is something in which someone gives their stocks over to a group of trustees, who ran seperate companies as one large cooperation.
B.This helped businesses such as the Carnegie Company because the bigger companies got some of the profits made by the trusts, so they were able to make more money for their company.
7. The perception of tycoons as “robber barons”
C. How did it harm businesses such as Standard Oil and tycoons like John D. Rockefeller?
The perception of Tycoons as "robber barons" harmed businesses such as Standard Oil and tycoons like John D. Rockefeller because it could've possibly made people fear buying one item from one producer, in fear that they may soon have complete control over it and charge more then the price should be for the item.
8. Sherman Antitrust Act
C. How did it harm businesses such as Standard Oil and tycoons like John D. Rockefeller?
8. Sherman Antitrust Act
C. How did it harm businesses such as Standard Oil and tycoons like John D. Rockefeller?
The Sherman Antitrust Act harmed businesses such as Standard Oil and tycoons like John D. Rockefeller because the act stated that it was illegal to form a trust that interferred with free trade between states and other countries which meant that it would be more difficult for someone to make a profit off of a trust, seeing as free trade between states and other countries had never before been an obstacle, and a monopoly wouldn't have been a problem because it didn't matter if it affected free tr4ade between states and other countries.
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