1. Age of Big Business – Age of Monopolies Capitalism – economic system Private ownership of the means of production Free enterprise (business management) – to meet the demands Profit Profit motive – goal to make $ Market price – buyers & sellers Competition Competition

2. Age of Big Business – Age of Monopolies To gain control of a product or business Types of monopolies Holding companies Holding companies Interlocking directorates Interlocking directorates Mergers/Consolidations Mergers/Consolidations Pools (pooling agreements) RR’s – divide routes & agree not to compete Pools (pooling agreements) RR’s – divide routes & agree not to compete

3. 3 New Vocabulary words… Monopoly: A company that completely dominates a particular industry Trust: a set of similar companies managed by a small group known as trustees, who can prevent companies in the trust from competing with each other Corporation: A company recognized by law to exist independently from its owners, with the ability to own property, borrow money, sue or be sued

4. Corporate Monopolies Horizontal vs. Vertical Integration