1. How did business change during the Industrial Revolution?
Big Business
How did business change during the Industrial Revolution?

2. How did business change?
Business grew larger and many organized into corporations
Corporations: large, organized companies owned by shareholders
Carnegie, Rockefeller and other leaders were criticized for forming large companies
Critics believed big business was too powerful
They became monopolies
Monopolies: large corporations that have little competition

3. Why is a monopoly significant?
Monopolies can charge higher prices for poorer quality products
They can do so because they do not have competition from other companies selling the same product
The buyers have no choice but to pay that price or do without the product

4. How were corporations important to business growth?
They are a safe form of business
People invest money in a corporation
They are protected if the corporation fails
Investors have limited risk or liability for the debt
People can buy stock in the company with capital (money), in which they earn money
Major corporations made millions by selling stock

5. How did companies become larger?
Leaders searched for new ways to organize companies
Vertical combination: a business that controls each step in making something
Carnegie bought mining and transportation to help his company produce steel
Horizontal combination: buying one’s competition
Rockefeller bought out other oil refineries to control oil production

6. What became of the companies?
They took business away from the competition and became monopolies
They were then called trust companies
Trust Companies: A large, powerful company that often is called a monopoly
Businesses were able to increase their wealth
Could employ thousands of workers
Became giant industries and very powerful