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American History Chapter 14-2

American History Chapter 14-2. The Rise of Big Business. Business in America. Entrepreneurs: People who take risks by investing money into new business ventures. Capitalism : Economic system in which most businesses are privately owned & operated.

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American History Chapter 14-2

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  1. American History Chapter 14-2 The Rise of Big Business

  2. Business in America • Entrepreneurs: People who take risks by investing money into new business ventures. • Capitalism: Economic system in which most businesses are privately owned & operated. • Laissez-faire: Government does very little in terms of regulating private businesses. • Social Darwinism: Survival of the fittest in society. • Strong businesses will adapt & thrive while weak businesses should be allowed to wilt & die.

  3. Business Structures in the U.S. • Proprietorship: Businesses run by an individual owner. • Partnership: Companies owned by 2 or more people. • In both, the owners are responsible for all debts. • Corporations: Businesses that are owned by stockholders. • Owners have purchased shares or stock. • A board of directors makes major decisions. • Trust: A group of corporations that merge under one board of trustees. • Monopolies: Trusts that have complete control over an industry.

  4. Businesses Grew Larger • John D. Rockefeller: Built the company Standard Oil. • Used vertical integration : The acquisition of companies that supply the major business. • Keeps costs low and profits high. • Also used horizontal integration: The takeover of companies that produce the same product. • Limits competition. John D. Rockefeller

  5. Vertical and Horizontal Integration Rockefeller

  6. Big Business Con’t. • Andrew Carnegie: Built the Carnegie Steel Company. • Built his company using vertical integration.

  7. Big Business Con’t. • Cornelius Vanderbilt: • Owned several railroad & shipping companies. • George Pullman: Invented & built railroad sleeper cars. Vanderbilt Pullman

  8. Big Business and Society • Many Americans viewed business tycoons as “robberbarons,” using their power to squeeze out competition. • Advertising became a big business: • Used images to sell their products. • Used clever brand names. • Department stores developed. • Mail-order catalogs were sent to rural residents.

  9. Sears, Roebuck & Company Catalog

  10. Let’s Go Shoppin’

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