US HISTORY Topic 9.2
Why did forming corporations allow big business to increase in power and profitability?
Corporations allowed many investors to combine their funds to create huge businesses that could buy raw materials in bulk, access large markets, fund new technology, advertise widely, and operate in different regions. Because each investor's risk was limited to his or her investment, a corporation could become involved in a business with a high level of risk as well as potential profit, such as railroads and mining, without investors losing their entire fortunes.
Support Ideas with Examples Cite arguments for and against increased federal regulatory power of private business using specific examples to support your answer.
Increased federal regulatory power of private business can help but also hurt others. It can help by regulating things such as lead paint or other hazardous material used in making toys and it can hurt business by putting so many regulations on them that they can not even do business anymore.
Interpret the effects of monopolies and cartels on the consumer.
The effect was generally negative. Because cartels and monopolies got rid of competition, they were free to set the prices of their products as high as the market would bear. Competition generally benefits the consumer; lack of competition generally hurts the consumer.
Summarize what made John D. Rockefeller such a successful businessman
he bought out other competitors. he also prevented rival companies from using the rail roads he held a controlling interest in.
Compare points of view. Why would one person use the term "robber baron" and another "captain of industry" to describe the same person
robber baron was typically applied to businessmen who used what were considered to be exploitative practices to amass their wealth , such as running competition out of business, and captain of industry meant the businessman's personal fortune contributes positively to the country in some way, even if he hurt other companies or people.
