They were able to make goods more cheaply and quickly and cut prices by using using large manufacturing facilities. The Rise of Big Business saw the corporations dominating all of the important, major industries. The Rise of Big Business and Corporations: Small Businesses were eliminated These practices allowed Big Business and corporations to achieve what are called Economies of Scale.They were also able to negotiate rebates from the railroads, reducing their operating and shipping costs even further.They had the money to employ a vast labor force to increase productivity.They had the money to buy many new machines and raw materials at highly competitive prices.Big Business and corporations were therefore able to invest in new inventions and technology.Big Business and corporations could use this money to invest in the business to increase their efficiency and profitability. ![]() Economies of Scale were made possible by using the money raised from the sale of stock.The Rise of Big Business was made possible by establishing corporations that used economies of scale. The Rise of Big Business and Corporations for kids: Economies of Scale ![]() Issuing stock allows a corporation to spread the financial risk.The people who own corporations are called stockholders.A corporation can issue shares of stock to raise large amounts of money with which to start a business or increase its capital.A corporation conducts business, pays taxes and makes contracts, and can sue and be sued.A corporation is an organization formed with state governmental approval that is owned by many people but treated by law as though it were a single person that has its own powers, duties, and liabilities.The Rise of Big Business would not have been possible without the corporation. The Rise of Big Business in America for kids: The Role of Corporations This changed in the 1830s when states began passing broad incorporation laws that allowed companies to become corporations and issue stock without charters from the state legislature. Charters (licenses to exist) were granted for a limited time and could be revoked. Before this time business entrepreneurs had to persuade a state legislature to issue them with a charter. The Rise of Big Business and corporations in the United States really began in the mid 1800's. The Rise of Big Business and Corporations: Charters replaced by Corporation Laws The Rise of Big Business and corporations saw varying business practices and ethics which led to wealthy industrialists being referred to either as Robber Barons or as Captains of Industry. These entrepreneurs also used new methods, inventions and technology to increase productivity and create new jobs. These men who built the new industries all made a significant contribution to the economy of the United States by expanding markets and increasing trade. The Rise of Big Business and corporations was driven by men of vision who took risks developing new inventions whose determination earned them vast amounts of money, fame and success. The Rise of Big Business and Corporations: The Robber Barons and Captains of Industry One of the features his presidency was the continuing Rise of Big Business and Corporations in the United States. Rutherford Hayes was the 19th American President who served in office from Mato March 4, 1881. The Rise of Big Business and Corporations for kids For addition facts refer to the article on the Labor Unions History. ![]() The Rise of Big Business and corporations led to social unrest including riots and strikes and the rise of labor Unions. Opponents of Big Business and large corporations in the late 1800's argued that they had too much power in government and used their influence to extract favorable legislation. The rise of Big Business and corporations were financed and organized on a such massive scale that they were able to influence social and political policies in the United States. The term was applied to large corporations that by mergers and acquisitions had consolidated (combined) and eliminated many companies that previously existed. Summary and Definition: The term 'Big Business' originated in the late 1800's commercial as a derogatory term for large corporations and unfair business practices. Definition and Summary of the Rise of Big Business in America
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