Part 5 Flashcards
Was Frederick Taylor a robber baron?
No
What did Frederick Taylor develop?
A system to study workers
What was the ultimate dream of big business?
Monopoly
What is a monopoly?
A company that has complete control of a product of service (every pics of the product).
Are monopolies legal?
No
What are the disadvantages of big business?
Few scruples Evading of laws Bribes wee common Destroys labor unions Devastates the environment Prices will drop then rise Consumers hate it
What is a company formed by a group of investors who each receive a share of the ownership in proportion to the amount they invested?
Corporation
Corporations offer investors enjoyment of the protection of what?
Limited liability (only risking the money they invest)
What do corporations allow?
Entrepreneurs in many industries to raise money to launch or expand companies quickly as opportunities arise.
What do corporations provide?
Permenency
What does selling bonds and stocks do?
They make capital in a hurry without going bankrupt
What are stocks?
Shares in the business or percent of ownership of the company
What are bonds?
The Kickstarter fund. Load to be paid back + interest= paid back from profit
What is capital?
Investment in money (cash/resources)
What are the advantages of big business?
Companies are able to produce more things, so they are thought as better things Met the demands of the entire us market Salaries for employees are higher Established departments (more efficient) Make things cheaper, higher profit Frederick W. Taylor Monopoly
