1. In the context of late 19th-century business, what strategy involved a company acquiring control of all the different businesses it depended on for its operation, from raw materials to distribution?
- A. Horizontal integration
- B. Vertical integration
- C. Corporate raiding
- D. Market diversification
2. Which of the following actions is a clear example of horizontal integration?
- A. A railroad company purchasing coal mines to fuel its locomotives.
- B. A large social media company acquiring a smaller, competing social media app.
- C. A clothing manufacturer buying the farms that grow the cotton for its fabrics.
- D. An automobile maker investing in a new division to produce electric scooters.
3. If a large meatpacking company were to purchase cattle ranches, refrigerated railroad cars, and a chain of butcher shops, which business model would it be implementing?
- A. A corporate trust
- B. Horizontal integration
- C. A joint venture
- D. Vertical integration
4. An industrialist who owned an oil company decides to purchase all other major oil refineries in the country. This strategy is known as:
- A. Supply-side economics
- B. Vertical integration
- C. Horizontal integration
- D. Laissez-faire capitalism
5. Which of the following best defines the strategy of horizontal integration?
- A. Buying out competitors.
- B. Owning the entire supply chain.
- C. Expanding into unrelated industries.
- D. Forming partnerships with rival firms.
6. Why would a person in the late 19th century choose to invest their money in a corporation by purchasing stock?
- A. To get a guaranteed job with the company.
- B. To personally manage the corporation's factories.
- C. To receive a share of the company's profits.
- D. To borrow money from the corporation for personal use.
7. Which of the following best defines a 'share of stock'?
- A. A loan provided to a business by a bank.
- B. A small piece of ownership in a corporation.
- C. The total amount of profit a business earns in a year.
- D. A government permit required to open a factory.
8. How did the actions of bankers like J.P. Morgan, who combined businesses, impact the American economy?
- A. They led to the creation of thousands of small, family-owned businesses.
- B. They significantly decreased the power and influence of banks in the country.
- C. They concentrated immense economic power in the hands of a few financiers.
- D. They ensured that all industries had high levels of competition.
9. A business that raises money by selling shares of ownership to the public is known as a...
- A. partnership.
- B. proprietorship.
- C. corporation.
- D. non-profit.
10. What was the main reason that many businesses in the late 1800s chose to become corporations?
- A. To receive special protections from government regulations.
- B. To raise large amounts of money from investors for growth and expansion.
- C. To give all employees an equal vote in company decisions.
- D. To focus on selling products only within a single state.