Students will be able to define: “Big Business” Interstate commerce Act Sherman Anti-Trust Act Clayton Anti-Trust Act

Vertical ConsolidationHorizontal Consolidation

Form of MonopolyDescription Pools Informal agreements among competitors to set prices or limit competition. Trusts A smaller corporation allows a larger corporation to control (but not own) its stock “in trust.”

Outlawed “pools” and set up the Interstate Commerce Commission to regulate trade between the states.

Outlawed trusts or other business structures that operated “in restraint of trade.”

Set up the Federal Trade Commission (FTC) to investigate unfair trade practices.

The Clayton Antitrust Act was passed to a. restore business competition b. end stock market speculation c. prosecute corrupt labor unions d. break up city political party machines

The term business monopoly can best be described as a. the most common form of business in the United States b. government control of the means of production c. an agreement between partners to manage a corporation d. a company that controls or dominates an industry

Business leaders John D. Rockefeller, J. P. Morgan, and Cornelius Vanderbilt were referred to as robber barons primarily because they a. bought titles of nobility from foreign governments b. were ruthless in dealing with competitors c. stole money from state and local governments d. gained all of their wealth by illegal means

During the late 1800s, pools and trusts were used by big business in an effort to a. increase imports b. limit competition c. improve working conditions d. reduce corporate income taxes

The Sherman Antitrust Act and the Clayton Antitrust Act were passed in an effort to a. promote the formation of new trusts b. maintain competition in business c. increase business investment d. limit the activities of foreign corporations