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Published byGregory Arnold Modified over 9 years ago
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Horizontal Integration Oil Company BOil Company A Oil Company C Combining Several Competing Companies in the Same Industry
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Trusts Problem: NJ Law Prohibited Corporations from Owning Other Corporations A smaller corporation allows a larger corporation to control (but not own) its stock “in trust.” STANDARD OIL Co. ACo. ECo. BCo. CCo. D HELD IN TRUST
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Interlocking Directorates When the same people serve on the Board of Directors of Corporations in the same industry Co. ACo. ECo. CCo. BCo. D Board of Directors
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Holding Companies In 1888 NJ law changed to allow corporations to actually own (not just control) stock in other corporations. Holding Company: When a one corporation owns a controlling percentage of another corporation’s stock STANDARD OIL Co. ACo. BCo. CCo. DCo. E OWNERSHIP
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Vertical Integration IRON FURNACE COAL MINE WIRE FACTORY IRON MINE MARKET STEEL MILL RAILROADS When one business controls various elements of the production & distribution process
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