1. The Business of the Gilded Era America’s Industrialization: 1880-1920

2. SITUATION You are an entrepreneur. –You have started a business so that you can make money (profit) by selling things your business makes.

3. SITUATION Your company is a proprietorship. –You are the only owner of the business; you are the sole “proprietor”. –You keep all of the profit but are also responsible for all of the risk of running the business. If the business fails, you are responsible!

4. SITUATION Your company is doing well, but you want more for yourself and for your company.

5. SITUATION In the slides that follow, you must make shrewd [or, wise] business decisions to make your business successful.

6. Choice 1 You want to move your business to a better location. To which place should you move your business? Town A Town B

7. Choice 1: BEST ANSWER Town B: … You want your business in a location that has railways and waterways. –Because trains and boats are better for transporting supplies and goods

8. Choice 2 You want to move your business to a better location. To which place should you move your business? Town A Town B

9. Choice 2: BEST ANSWER Town B: … You want to move your business to a location where people live close together, near their jobs. –Because your workers need to be able to walk to work.

10. Choice 3 You want to move your business to a better location. To which place should you move your business? Town A Town B

11. Choice 3: BEST ANSWER Town B: You want to move your business to a location with many people that could work for you. –Because you may need to hire hundreds of workers. If workers are competing for jobs, they may be willing to work for less money, just so that they have a job! New York City "ghetto" fish market / Thomas A. Edison, IncNew York City "ghetto" fish market / Thomas A. Edison, Inc.

12. Choice 4 You want to move your business to a better location. To which place should you move your business? Town A Town B

13. Choice 4: BEST ANSWER Town A: You want to move your business to a location that will allow you to transport your product to other cities across the nation. –Because, that way you can sell your goods in markets nationwide.

14. Choice 5 You want your business to grow. Will you… Decision A: use machines and people. Decision B: use people without machines.

15. Choice 5: BEST ANSWER Decision A: You use machines and people. –Because, by using people & machines, your workers will be faster and produce more. Girls winding armatures / American Mutoscope and Biograph Company

16. Choice 6 You want your business to make things faster and more cheaply. Will you… Decision A: use an assembly line. Decision B: have each person make each item completely.

17. Choice 6: BEST ANSWER Decision A: You will use an assembly line. –Because, you want your business to make things faster and more cheaply.

18. Choice 7 You want your business to grow. Will you… Decision A: continue to run the business yourself. Decision B: select partners you trust to help you manage the business.

19. Choice 7: BEST ANSWER Decision B: You turn your business into a partnership by selecting to help you run the business. –By turning your business into a partnership, you share the risk and profit of the business with other people

20. Choice 8 You want your business to grow. Will you… Decision A: borrow money from banks to use in expanding your business. Decision B: Use only your profit money to expand business.

21. Choice 8: BEST ANSWER Decision A: You decide to take out a loan from the bank to invest in your business. –Because, borrowing money from the bank allows your business to spend more money than it has earned to buy what it needs to grow.

22. Choice 9 You want your business to grow. Where will you advertise your business? Decision A: Locally Decision B: Nation-wide

23. Choice 9: BEST ANSWER Decision B: Advertise nation-wide to sell the most items.

24. Choice 10 You want your business to grow. How will you advertise your products? Decision A: Through word of mouth. Decision B: Through printed advertisements.

25. Choice 10: BEST ANSWER Decision B: Advertise in newspapers using printed ads to make your product more popular.

26. Choice 11 You want your business to grow. Will you advertise, sell, and send your products through the mail? Decision A: YES Decision B: NO

27. Choice 11: BEST ANSWER Decision A: Advertise in mail-order catalogues. More customers means more profit!

28. Choice 9, 10, & 11: I want my business to grow, so I will advertise _______________, through ___________________ and ______________________. Advertising brings more customers to you and makes the name of your business more well-known.

29. Sample pages from the Sears, Roebuck & Co. Catalogue (1902)

33. Choice 12 You want your business to grow. Will you improve your ability to do business by using new technology? Decision A: YES Decision B: NO

34. Choice 12: BEST ANSWER Decision A: Using typewriters and telephones will help your company to communicate better. Using electricity will let you work longer hours and use more machines.

35. Choice 13 You want your business to become a “big” business. Will you turn your business into a corporation?

36. Choice 13 + As a corporation, the business will be able to continue after you leave the business. + As a corporation, the business will be able to have enough money to expand, and even eliminate all of your competition.

37. Choice 13 -As a corporation, you will own only a “share” (a %) of the company. These shares are sold to the public as “stock”. People who own stock in a corporation are part- owners of that corporation.

38. Choice 13 +As a corporation, if the business fails, the shareholders are not responsible for the company’s debt.

39. Choice 13 Will you turn your business into a corporation? Decision A: continue to run the business as a partnership Decision B: Sell shares of your company’s stock and become a corporation

40. Choice 13: BEST ANSWER Decision B: You turn your business into a corporation by selling shares of your company’s stock.

41. Choice 13: BEST ANSWER +As a corporation, if the business fails, the shareholders are not responsible for the company’s debt.

42. Choice 14 You want to produce more at a lower cost. How will you reduce costs? Decision A: Fire workers Decision B: Buy-up companies that supply you with materials you use to make your products

43. Choice 14: BEST ANSWER Decision B: You buy-up companies that supply you with materials you use to make your products -Because, you can get your materials cheaper by owning the companies that make them.

44. CONGRATULATIONS! You wanted your business to grow. You were willing to do anything to succeed

45. Consider yourself a “Captain of Industry”!

46. Though, behind your back, other people may call you a “Robber Baron” (“Baron” is a noble title, like Duke or Earl).

47. Video Clip documentation: New York City "ghetto" fish market / Thomas A. Edison, Inc. 1903. Library of Congress Motion Picture, Broadcasting and Recorded Sound DivisionNew York City "ghetto" fish market / Thomas A. Edison, Inc Girls winding armatures / American Mutoscope and Biograph Company. 1904. Library of Congress Motion Picture, Broadcasting and Recorded Sound Division WashingtonGirls winding armatures / American Mutoscope and Biograph Company “The Yvonne Slipper” Excerpt from New York Times, December 21, 1913. Library of Congress, Serials and Government Publications Division.Excerpt from New York Times, December 21, 1913 “Rexall Antiseptic Tooth Powder” Excerpt from New York Times, June 25, 1916, Library of Congress, Serials and Government Publications Division.Excerpt from New York Times, June 25, 1916 “Glassberg Short Vamp Shoes” Excerpt from New York Times, March 18, 1917. Library of Congress, Serials and Government Publications DivisionExcerpt from New York Times, March 18, 1917 Sears, Roebuck & Co “Why We Ask 50 Cents for Our Catalogue” (1902) Rare Book, Manuscript, and Special Collections Library, Duke UniversityWhy We Ask 50 Cents for Our Catalogue