Question

Explain the conditions that led to the rise of big business in the nineteenth century. Define the terms vertical and horizontal integration, trusts, and corporations?

Please answer this question with 3 pages answer ( please type your answer not Hand written) Thank you

Answer 1

Rise of Big Business. ........

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 led to social unrest including riots and strikes and the rise of labor Unions.

“ Big " is never defined precisely, but the quantitative term is popularly used to connote something important.

Big business involves large-scale corporate-controlled financial or businessactivities. As a term, it describes activities that run from "huge transactions" to the more general "doing big things".

• The Conditions which led the rise of large commercial, financial activities, trade transactions are mentioned below as ............  
• 1. technology:

  The change of old technology and adoption of new technology boosts the trade onto a large scale. As upgraded machines,tools have made the work easier and faster, increased output, by which trade activities had practices on large scale.

2.Transportation:

The mode of transportation has been improved by implementing new railroads which connects the every corner of trade area in lesser duration, these mode helped the companies to meet the demand and supply on given time.

3.Transformation of business:

It has been seen that with the help of upgraded technology, transport, Financial services, the local business was transformed itself into a business compay where they make use of available resources and expand their business to a next level.

4.Infrastructure:

When the trade activities are to be expanded it is necessary to improve the infrastructure, and it has taken place where along with the business expansion they also improved the infrastructure which helped them in proper use of availability.

Inventions and Innovations: The business companies were trading on a large scale at entire trade area. Well people started to try new business ideas, plan to start the trade activity in all new way whereas some business companies changed their working style in trading activities, these brought up change and new idea for trading activities.

Increase in Production: New technology, Financial services, new ideas with all these available sources now the business companies were able to increase their volume of production with this they were contributing to big business activities.

*Horizontal and vertical integration:

Horizontal integration is a strategy which consists of the companies which acquires,merges or joins the another company in the same industry and same production line to achieve economy of scale which also reduces the competition.

Vertical integration:

It is strategy where the companies joins the another company but at the earlier stage of production or further stage of production ie backward or forward intergration.

TRUST:

A trust is a structure entity which is formed under a trust deed( which includes list of trustee their role, share of profit and loses , debt and many more) where a trustee is involved in activities on behalf of trust and other beneficiaries. where the trustee is responsible for all the transactions and occurances.

CORPORATION:

It is a legally entity which is formed by a group of people and it is involved into business activities. it is concerned as the group of people coming together to form a corporation and ease to start a business activities,it involves a list of directors who atheres the principles of corporation. It is separate legal entity.