BIG BUSINESS EMERGES

1. VERTICLE INTEGRATION

A. Process by which a company buys out all of it’s suppliers.

b. Gave companies complete control over Quality & Cost.

Corporation

Transportation

Raw Materials

2. Horizontal Consolidation

A.Process in which a company buys out or merges with it’s competition

B. Company gains control over it’s competition.

BURGER!

MEGA

3. Social DarwinismA. Based on Evolution Theory;

Free Competition would ensure success or failure in business

B. Glorified Big Business & Tycoons.

B. Discouraged Gov’t interference. “Laissez-Faire”

A. Complete control over and industry’s production, quality, wages and prices.

4. MONOPOLY

B. Eliminated Competition allowing increased profits

5. Holding Company

A.Corporation that buys stock of other companies

B. Created Monopolies (U.S. Steel)

6. Trust

A. Corporation made up of many companies that receive a share of the profits made by all the companies combined.

7. How did the perception of tycoons as “Robber Barons” hurt their reputation?

•Turned public opinion against Tycoon & their businesses

•Encouraged Gov’t regulation of Big Business

8. How did the Sherman Antitrust Act hurt Big Business?

•Made Interstate & international trusts illegal

•Made it Possible to prosecute Companies