1. Definitions Regarding the Industrial Revolution
By Mr. Eichmann

2. Bessemer Converter and the Bessemer Process
A machine and process that helped make iron into steel, leading to it being used for building, rail lines, ships, and machines.

3. Oil Industry
Edwin L. Drake found petroleum under the ground by digging a well in Titusville, Pennsylvania in 1859.
Led to the creation of the multimillion-dollar petroleum industry.

4. Factors of Productions
Land Labor Capital
A place to build Workers Machinery and
your factory investment Equipment
Entrepreneurship – when a person combines the resources above to produce a good or service.

5. The Factory System Develops in the 1800s
Interchangeable parts - Parts of equipment that can be replaced rather than the entire piece of equipment.
Division of Labor - where each person is responsible for a different task on an assembly line
Assembly line (add) - where products are placed on a conveyor belt and put together piece by piece
Mass Production - when one item in a factory is made over and over again
Specialization - Where particular businesses make a specific product for a field or business.

6. Terms Related to the Study of the Economy
Business Cycle - An economic trend where an economy moves through periods of good times and bad times
Prosperity - Time of high production and low unemployment
Recession - An economic slowdown where there is low production and higher unemployment
Depression - A period of extremely low production and high unemployment

7. Corporate Structure
Board of Directors - Elected members of the company who oversee the company’s mission, finances, and choose the Chief Executive Officer.
Chief Executive Officer - Oversees the management and performance of the company
Shareholders - People who own a portion of the company and share in its profits and losses

8. Corporate Structure Stock - Ownership in a company
Stock certificates - Document that shows proof of ownership of shares in a company
Dividend - When companies periodically pay out profits to shareholders

9. Big Business Definitions
Entrepreneurs - People who create a new product or line of business
Cutthroat competition - When you lower prices to run your competitors out of business
Fixed Costs - Costs that are consistent with running a business (rent, utilities, salaries)
Vertical Integration – Purchase of companies at all levels of production to control costs to make a product.
Horizontal Integration – Purchase of competiting companies in the same industry to decrease competition.

11. Big Business Definitions
Monopoly - When one company virtually controls an entire business
Trust - When a corporation breaks into separate companies to produce different lines of products

12. Big Business Definitions (Continued)
Pool - When corporations in one business work together to set prices for a product
Chain Stores - A place where large amounts of goods and services are provided over a large area
“Laissez Faire” - A belief in the late 1800s that government should leave business alone and let the market determine prices.

13. Stock Market Definitions
The New York Stock Exchange - A market on Wall Street in New York City where stocks are bought and sold

14. The Dow Jones Industrial Average
An indicator in the New York Stock exchange made up of 30 companies that measures the performance of the stock market.
Others (S&P 500, )

15. The NASDAQ
Stands for National Association of Securities Dealers Automated Quotations
Another stock exchange created in the 1970s where stocks are bought and sold, leaning more towards technology stocks