1. Honors American History

2. Looking at the previous lesson, spend the next few minutes looking at the unions and discuss their impact on American society.

3. Corporation- An organization that is authorized by the law to carry on an activity but treated as though it were a single person. In a corporation you have limited liability, as responsibility for the company is spread among a group of people.

4. Monopoly Total control of a type of industry by one person or one company. Holding company A company who’s primary business is owning a controlling share of stock in other companies. Trust A combination of firms or corporations formed by a legal agreement, especially to reduce competition.

5. Andrew Carnegie- Was responsible for the idea of vertical integration. While working for the Pennsylvania railroad, Carnegie invested in other companies that could help the railroad. He invested in iron mills and factories that made sleeping and locomotive cars. After his success with the railroads, Carnegie became most famous for his vertical integration of his steel company.

6. Vertical integration The combining of companies that supply equipment and services needed for a particular industry. Horizontal integration The combining of competing firms into one corporation.

7. J.D Rockefeller - Rockefeller was the owner of the Standard Oil company. Standard Oil shipped so much oil that they were able to negotiate rebates or refunds from railroads that wanted their business. This gave Rockefeller’s Standard Oil company an advantage and he began to pressure other oil companies to sell to him. He eventually owned 90 percent of the oil refining industry

8. To raise money to fund their business, many companies began to sell stock. Businesses would then use that money to buy new machines, hire more labor, and improve efficiency. Companies were able to improve things so much that they achieved economies of scale. This is the concept in which corporations can make goods more cheaply, because they can produce goods quicker and cheaper.

9. Due to the falling prices of goods, consumers benefited, but companies did not. In order to keep prices at a good level for all, companies would sometimes form pools: Pools are agreements used to maintain prices at a certain level. These however did not last for very long, as companies would cut prices to try and steal the market. Other business would then follow.