Big Business
Corporations
• Business that sells portions/shares of the
company to stock holders
– Stockholder buy stock shares on the Stock Market
– Stockholders get a percentage of the Businesses
profits
• Limits potential lose to stockholders
• Provide cash to business to reinvest in company
Andrew Carnegie
United States Steel
Vertical Integration
• Own all of the steps of the manufacturing process of a
product.
Vertical Integration
John D Rockefeller
• Standard Oil
Standard Oil Company
Horizontal Integration
Own all businesses in a certain field
Trust
• Business arrangement grouping a number of
companies together under a single board of
directors, often controlled by a large
corporations owner.
– Goal is to eliminate competition
• Collusion
Monopoly
• When a single company owns all aspects of
production, or owns all business producing a
certain product or service.
Sherman Anti-Trust Law -1890
Law which made
monopolies illegal.
a. To many
loopholes.
John Sherman
Why are monopolies
bad for an
economy?