CAPTAINS OF INDUSTRY
A Captain of Industry is a business leader that amassed a great deal of wealth by creating an industry that benefits the nation in a positive way. This includes increasing the availability of goods, creating more and newer jobs, and donating massive amounts of money (creating universities, institutions, museums, etc) to benefit the well being of the people. Their risks and efforts turned America into the wealthiest and most technologically advanced country in the world. Many people refer to these captains as "Robber Barons" as they were ruthless against the competition, many times creating a monopoly, and exploitive of labor while creating their empires.
A Captain of Industry is a business leader that amassed a great deal of wealth by creating an industry that benefits the nation in a positive way. This includes increasing the availability of goods, creating more and newer jobs, and donating massive amounts of money (creating universities, institutions, museums, etc) to benefit the well being of the people. Their risks and efforts turned America into the wealthiest and most technologically advanced country in the world. Many people refer to these captains as "Robber Barons" as they were ruthless against the competition, many times creating a monopoly, and exploitive of labor while creating their empires.
The Rise of Corporations
The rise of big business was driven by men of vision who took risks during the Industrial Revolution. New inventions, innovations, and technology provided the entrepreneurs of the era with the opportunity to create massive businesses, which earned them vast amounts of money, fame, and success.
These new large businesses became known as corporations. A corporation is an organization that grows by selling shares of stock (partial ownership) to investors that wanted to buy into the company. People that choose to buy shares of stock in a company give the corporation their money as an investment. As the company does well, the stock value may go up meaning the investor makes money. By issuing stock to the public and gaining many investors, a corporation is able to raise large amounts of money they would use for big projects such as investing in new technology, hiring a large workforce, or buying additional machines. With this type of expansion businesses could greatly increase their output and become more efficient, resulting in higher profits.
Each shareholder also has what is known as a limited liability in the company. As the company makes money, the shareholders value increases. However, if the company does poorly, the shareholder is only out the money they initially invested, reducing their financial risk (liability). They cannot be sued individually for things the company is responsible for and are not responsible for debt the company may incur. Shareholders are simply investors that may loose the amount of money they invested.
Without a sole owner of the company, a corporation is also benefited by what is known as separation of ownership and management. The owners, or shareholders of a corporation are involved in a purely financial aspect. The management is hired separately to run the company and work for an agreed upon salary. This helps to remove some of the personal or emotional attachment within the business, and allows it to focus on the business. An added benefit to this set up is longevity. It is easier for corporations to exist for much longer periods of time, as the death of an owner, or shareholder, does not disturb the business of a corporation.
The rise of big business was driven by men of vision who took risks during the Industrial Revolution. New inventions, innovations, and technology provided the entrepreneurs of the era with the opportunity to create massive businesses, which earned them vast amounts of money, fame, and success.
These new large businesses became known as corporations. A corporation is an organization that grows by selling shares of stock (partial ownership) to investors that wanted to buy into the company. People that choose to buy shares of stock in a company give the corporation their money as an investment. As the company does well, the stock value may go up meaning the investor makes money. By issuing stock to the public and gaining many investors, a corporation is able to raise large amounts of money they would use for big projects such as investing in new technology, hiring a large workforce, or buying additional machines. With this type of expansion businesses could greatly increase their output and become more efficient, resulting in higher profits.
Each shareholder also has what is known as a limited liability in the company. As the company makes money, the shareholders value increases. However, if the company does poorly, the shareholder is only out the money they initially invested, reducing their financial risk (liability). They cannot be sued individually for things the company is responsible for and are not responsible for debt the company may incur. Shareholders are simply investors that may loose the amount of money they invested.
Without a sole owner of the company, a corporation is also benefited by what is known as separation of ownership and management. The owners, or shareholders of a corporation are involved in a purely financial aspect. The management is hired separately to run the company and work for an agreed upon salary. This helps to remove some of the personal or emotional attachment within the business, and allows it to focus on the business. An added benefit to this set up is longevity. It is easier for corporations to exist for much longer periods of time, as the death of an owner, or shareholder, does not disturb the business of a corporation.
TYPES OF BUSINESS ORGANIZATIONS Big Business would not have been possible without the rise of Corporations. Study the chart to the left, understand what a corporation is, how it generates money, and the advantages and disadvantages of establishing a corporation. Refer to Ch 5.3 (pg 195) to get further information. |
VERTICAL AND HORIZONTAL INTEGRATION In an effort to make their businesses as cost effective as possible, industry leaders like Andrew Carnegie and John D. Rockefeller utilized strategies to control all steps of producing goods and buy up the competition. Many times this would lead to the development of large business mergers, called trusts, and the eventual formation of monopolies. Study the charts to the right, and be able to answer the questions accompanying the illustrations. For further details, refer to Chapter 5.3 (pg 197) |
from: http://www.intellectualtakeout.org/library/chart-graph/real-price-oil-1870-1897
ANDREW CARNEGIE (2 VIDEOS)
View this video on Andrew Carnegie
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View this video on US Steel
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JOHN D. ROCKEFELLER (2 VIDEOS)
View this first video on John D. Rockefeller
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View this second video on John D. Rockefeller
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View this video on Henry Ford
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View this video on how JP Morgan saved the US Government
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Investigate the info available in these interactive resources !! Interactive Slides: New Ways of Doing Business Interactive Quiz: The Men Who Built America |