Age of Big Business – Age of Monopolies

confidencetoughManagement

Nov 20, 2013 (3 years and 6 months ago)

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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

motive


goal to make $


Market price


buyers & sellers


Competition

Age of Big Business


Age of Monopolies


To gain control of a product or business


Types of monopolies


Holding
companies


Interlocking directorates


Mergers/Consolidations



Pools (
pooling agreements) RR’s


divide routes & agree
not to compete


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


Corporate Monopolies

Horizontal



vs.



Vertical
Integration