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Business Developments. Business Developments. 1) Business Practices before the Civil War A) Proprietorships and partnerships Weaknesses: limited $ avail for investment Big factories need large amounts of $ to get started. Business Developments. 2) Corporations
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Business Developments • 1) Business Practices before the Civil War • A) Proprietorships and partnerships • Weaknesses: limited $ avail for investment • Big factories need large amounts of $ to get started
Business Developments • 2) Corporations • A) Stocks – certificates of ownership owned by stockholders • B) Dividend – Part of the corporations profits each shareholder receives • C) The fastest growing corporations: • Railroads • City transportation and later interstate • Building materials – steel • Energy – coal, oil, steam • Communication- telegraph and telephone
Business Developments • 3) Other forms of business organization: The aim was usually to control or expand the market. • A) Monopoly – A company with complete control over a certain field of business. • Allows a company to set high prices • Monopolies are regulated by the federal government today
Business Developments • B) Conglomerate – A corporation owns a number of companies in diversified fields. • These are formed by monopolies where one company owns many • C) Pool: Companies agreeing to fixprices and price gouge. • D) Trust – several corporations unite combining under a single enterprise.
