Vocab Flashcards
A method by which you can make steel more efficiently and cheaper.
Bessemer Process
An organizer of big business
Entrepreneur
An economic system divided by Adam Smith in his book Wealth of Nations and based on private ownership of resources.
Capitalism
Commercial operations organized and financed on a large scale.
Big business
One of the American industrial or financial magnates of the late 19th century who became wealthy by unethical means.
Robber baron
One of the original robber barons who eventually took over every railroad in New York, which he expanded. He created four lines of track, quadrupling profit. His speed of transportation lead to time zones. He created the blueprint for robber barons.
Cornelius Vanderbilt
He was a robber baron who created the blueprint for company towns. He accidentally created tourism. He invented a method where people could travel in comfort: Pullman Dining Car and Pullman Sleeping Car
George Pullman
Discounts for the seller that are forced upon others. Given to large companies to ensure the continuance of business. These are now illegal
Rebate
Where several companies agree to divide up business in a given area. These are legal.
Pool
He is not a robber baron. He develops a system to study workers.
Frederick W. Taylor
The ultimate dream of big business but they are illegal now. It is a company that has complete control or a product of service.
Monopoly
A company formed by a group of investors who each receive a share of the ownership in proportion to the amount they invested. Entirely American. They offer protection of limited liability.
Corporation
Shares in the business or percent of ownership of the company
Stock
Kickstarter funds. Loan to be paid back + interest= paid back from profit
Bonds
Investment in money (like cash or resources )
Capital
Shares of a corporation’s profit which is based on how many shares of stock you have.
Dividends
Specialized corporation with no products or consumers that own stocks in other corporations.
Holding Company
People with privately owned money who want to help carry on business.
Capitalist
Specialized corporation that is formed when several companies give control to a single form of trustees who then manage the business.
Trust
Specialized trust that is an association of businesses that make the same product, yet limit the supply in order to maintain high prices. These are now illegal in the US.
Cartel
Divided my Adam smith. Businesses are owned by private citizens with no direction from the government.
Free Enterprise System
Private monopolies and artificial restrictions on trade are bad. “Every contract that is a trust or is related to a trust is illegal.”
Sherman Anti-Trust Act
Several firms engaged in the same kind of business were joined together or when the loser of a price war leaves an area.
Horizontal Integration
Best example of horizontal integration. Standard Oil Company to Standard Oil Trust. He is a robber baron. Starts horizontal, expands vertical.
John D. Rockefeller
Muckraker who uses her newspaper to tell everything about Rockefeller.
Ida Tarbell
Joined businesses engaged in different but related companies.
Vertical integration
Scottish man that came over when he was 13. Example of vertical integration. Carnegie’s steel. Got a job as a telegraph operator. He lived homeless for a while. Made iron and steel at the same time.
Andrew Carnegie
Carnegie’s banker. The richest man the US has ever known. He was a robber baron. He bought up nearly every railroad and every steel factory.
J.P. Morgan
1865-1890. The US reindustrialize st he entire nation. They replace the old factories with bigger ones.
Second industrial revolution
