1. New Methods and Business Organizations Bell Ringer: How did factories change society?

2. Capitalism 1800’s Western Europe and the US had a growing spirit of individual enterprise. Capitalism: economic system, that is controlled by individuals and corporations in terms of production. Commercial Capitalism: Merchants who bought and sold goods. Industrial Capitalism: capitalists who become more involved in producing and manufacturing goods.

3. Production Labor Division Manufacturing was divided into parts. Unskilled workers were hired and assigned a step. Lowered costs, increased production. Interchangeable Parts: Parts that are made all the same, so that they could be easily replaced. Assembly Line System of producing a high number of identical goods: Mass Production. Each part is made at another location, then put together on the assembly line. Each worker performed a specific task. Henry Ford was the first to put this idea to use in making automobiles.

4. Rise of Corporations Prior to the revolution businesses were small and owned by 1 person. –That person was responsible for decisions, debt, and production. 1800’s new business arose known as Corporations: business groups that allowed people to buy stock in companies. –All investors make or lose money based on company performance. Banks play an important role in corporations. By 1901 JP Morgan has a multi million dollar corporation in United States Steel. Corporations who have control of a market are known as a monopoly.

5. Business Cycles Business Cycle: Alternating periods of prosperity and decline. The Business Cycle changes based on demand and supply.

6. Homework Do all reading Checks, each should have at least 1 substantial paragraph (8 sentences with support) Do the section review on page 558. Questions 1, 2, Due tomorrow.