1. American History Chapter 14-2 The Rise of Big Business

2. Business in America Entrepreneurs: People who take risks by investing money into new business ventures. Capitalism: Economic system in which most businesses are privately owned & operated. – Laissez-faire: Government does very little in terms of regulating private businesses. Social Darwinism: Survival of the fittest in society. – Strong businesses will adapt & thrive while weak businesses should be allowed to wilt & die.

3. Business Structures in the U.S. Proprietorship: Businesses run by an individual owner. Partnership: Companies owned by 2 or more people. – In both, the owners are responsible for all debts. Corporations: Businesses that are owned by stockholders. – Owners have purchased shares or stock. – A board of directors makes major decisions. Trust: A group of corporations that merge under one board of trustees. Monopolies: Trusts that have complete control over an industry.

4. Businesses Grew Larger John D. Rockefeller: Built the company Standard Oil. – Used vertical integration : The acquisition of companies that supply the major business. Keeps costs low and profits high. – Also used horizontal integration : The takeover of companies that produce the same product. Limits competition. John D. Rockefeller

5. Vertical and Horizontal Integration Rockefeller

6. Big Business Con’t. Andrew Carnegie: Built the Carnegie Steel Company. – Built his company using vertical integration.

7. Big Business Con’t. Cornelius Vanderbilt: – Owned several railroad & shipping companies. George Pullman: Invented & built railroad sleeper cars. Vanderbilt Pullman

8. Big Business and Society Many Americans viewed business tycoons as “robber barons,” using their power to squeeze out competition. Advertising became a big business: – Used images to sell their products. – Used clever brand names. – Department stores developed. – Mail-order catalogs were sent to rural residents.

9. Sears, Roebuck & Company Catalog

10. Let’s Go Shoppin ’