SFI quiz 8/28

trust

manage other companies a relationship whereby property is held by one party for the benefit of another. A trust is created by a settlor, who transfers some or all of his or her property to a trustee. The trustee holds that property for the trust's beneficiaries. An owner placing property into trust turns over part of his or her bundle of rights to the trustee, separating the property's legal ownership and control from its equitable ownership and benefits

horizontal integration

offer exact same service example is the management of a group of products which are alike, yet at different price points, complexities, and qualities. This strategy may reduce competition and increase market share by using economies of scale.

Alexander Graham Bell

patented the telephone in 1876, signaled the rise of the US to world leadership in industrial technology , other inventions marked Bell's later life, including groundbreaking work in optical telecommunications, hydrofoils and aeronautics. In 1888, Bell became one of the founding members of the National Geographic Society, credited with inventing the first practical telephone

Andrew Carnegie

steel (cardinals and Steelers); known as genius at vertical integration, needed to build bridge: oil, steel and coal companies, architectural firm , wrote the gospel of wealth who led the enormous expansion of the American steel industry in the late 19th century, philanthropist

Bessemer Process

Andrew Carnegie developed to remove air pockets from iron that resulted in a stronger type of steel, revolutionize efforts in the industry for buildings was the first inexpensive industrial process for the mass-production of steel from molten pig iron prior to the open hearth furnace

Cornelius Vanderbilt

believed In the expanding of knowledge and spread the wealth after obtaining it also known by the sobriquet Commodore,[2] was an American business magnate and philanthropist who built his wealth in railroads and shipping. He was also the patriarch of the Vanderbilt family and one of the richest Americans in history. He provided the initial gift to found Vanderbilt University, which is named in his honor.

Herbert Spencer

coined the term social Darwinism Spencer developed an all-embracing conception of evolution as the progressive development of the physical world, biological organisms, the human mind, and human culture and societies Spencer is best known for coining the expression "survival of the fittest"

Pools

collective agreement among businesses, don't merge

monopoly

complete control of a company sought to maximize the exploitation of natural resources and a growing labor force

vertical integration

different companies involved in steps of the company merge together (Rockefeller and oil) where the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. where the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need.

holding company

doesn't produce for itself but owns the stock of other production companies (movie theaters, someone comes in to buy stock in the company), expand the enterprise of each company ; serves other companies (has no customers) its purpose is to own shares of other companies to form a corporate group. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies.

Morrill Tariff

example of government intervention , tax on imports (Tea Act), this and other acts doubled the prewar rate It was a key element of the platform of the new Republican Party, and it appealed to industrialists and factory workers as a way to foster rapid industrial growth by limiting competition from lower-wage industries in Europe. The Morrill tariff inaugurated a period of continuous trade protection in the United States, a policy that remained until the adoption of the Revenue Act of 1913 (the Underwood tariff). The schedule of the Morrill Tariff and its two successor bills were retained long after the end of the Civil War.

J.P. Morgan

financier, a banker, philanthropist, dominated corporate finance (did business with corporations) , had more power than wealth , 1895 he bailed out the American treasury , government had a line of gold with him (saved them from bankruptcy) art collector who dominated corporate finance and industrial consolidation during his time. After financing the creation of the Federal Steel Company, he merged it in 1901 with the Carnegie Steel Company and several other steel and iron businesses, including Consolidated Steel and Wire Company, owned by William Edenborn, to form the United States Steel Corporation. He directed the banking coalition that stopped the Panic of 1907. He was the leading financier of the Progressive Era, and his dedication to efficiency and modernization helped transform American business.

Gilded Age

first crafted by Mark Twain and applied to the 3 decades after the civil war (1865-1895) , means covered in gold (extravagant, impressive on the outside), quality is not persistent, not prosperous for everyone satirized an era of serious social problems disguised by a thin gold gilding. finance increased in importance. Immigration from Europe, China and the eastern states led to the rapid growth of the West, based on farming, ranching and mining. Labor unions became important in industrial areas.

John D. Rockefeller

founder of Standard Oil company forms first US business trust ,first secured preferential rates from railroads eager to ensure a steady supply of oil revolutionized the petroleum industry, and along with other key contemporary industrialists such as Andrew Carnegie, defined the structure of modern philanthropy

Thomas Edison

• 1876 marked the opening of Thomas Alva Edison's laboratory in Menlo Park, New Jersey, one of the first devoted to industrial research • 1882, the Edison Electric Light Company launched in New York (soon replaced steam as major power source) invented the alkaline storage battery, the phonograph, and the kinetoscope, the first machine to allow one person at a time to view motion pictures

Wright Brothers

• 1903 Wilbur and Orville Wright first flight in Kitty Hawk, North Carolina developed their flying machine into the first practical fixed-wing aircraft. first to invent aircraft controls that made fixed-wing powered flight possible. Their work with bicycles in particular influenced their belief that an unstable vehicle like a flying machine could be controlled and balanced with practice

Standard Oil Company

• Standard Oil Trust 1882: controlled over 90% of the nation's oil-refining industry • Horizontal combination: entailed gaining control of the market for a single product ex. Standard Oil Company founded by Rockefeller in 1870 company forms first US business trust Its controversial history as one of the world's first and largest multinational corporations ended in 1911, when the United States Supreme Court ruled that Standard was an illegal monopoly.

Social Darwinism

• claim that how things work in nature can be applied to humanity: in which you either survive or not , how you can engage with other people ,he believed that some people are born with these qualities or would adapt to their surroundings to succeed • Used to justify wealth generally argue that the strong should see their wealth and power increase while the weak should see their wealth and power decrease.