1. KECSS Ms. Murren Outcome : SWBAT identify and explain government policies that promote competition

3. Who is John D. Rockefeller? John D. Rockefeller’s Standard Oil Company was notorious for driving competitors out of business and pressuring customers to not deal with rival companies. He also placed members of Standard Oil’s board of directors on the board of directors of competing corporations. This practice is called interlocking directorates

4. Mini Lesson  What is an interlocking directorate  A Board of Directors that serve as the board of directors for a competing corporation The advantages of this practice it is less tempting for the companies to compete with one another. Ex. NBC and Bravo

5. What is anti-trust legislation?  Federal and state laws that are passed to prevent new monopolies from forming and to break up those that already exist  Examples are Clayton Act.  At&T was once the nation’s largest corporation and it held a natural monopoly on telephone service. In 1984 “Ma Bell” as it was called was broken up after the settlement of a lawsuit filed federal government

6. What is a merger?  A merger occurs when two or more corporations legally merge to become one corporation  There are different types of mergers horizontal, vertical and conglomerates

7. Mergers  Horizontal Mergers  When corporations that are in the same business merge.  Vertical Mergers  Conglomerates  When corporations that are in the same business merge.