An Industrial Society The Rise of Big Business 1. How did businesses change in the late 1800s? In the late 1800s, businesses changed by going from being owned by one person to a business owned by a few partners. Owners sold parts of their business by selling shares of stock. This made their business a corporation. 2. What advantages do corporations have that smaller businesses do not have? Advantages that corporations have over small businesses are they can raise a lot of money by selling stock, corporations have a special legal status and continues to exist when the owner dies, and they limit the risk to the investors, who do not have to pay off the corporations debt. 3. What method did Rockefeller use to gain control of the oil industry? To gain control of the oil industry, Rockefeller decided to put his competitors out of business. He made secret deals with railroads and bought his own pipelines to carry oil. He also set up a trust , a legal body, to hold stock in many oil companies. By doing this he could control the industry and have a monopoly in the oil industry. 4. How did Carnegie’s methods of gaining control of the steel industry differ from Rockefeller’s? Carnegie’s method of controlling the steel industry were different from Rockefeller’s because he decided to control all the processes related to making steel. This allowed him to make steel cheaper than any other company. 5. Where was Andrew Carnegie’s first job? Andrew Carnegies first job was in a cotton mill. Monopoly Man designed after J P Morgan (who had a monopoly in steel industry) 6. What were some of the characteristics of the “Gilded Age”? Some of the characteristics of the Gilded Age are that it was a time of fabulous wealth in which those who made millions had not been raised from poverty. 7. Why is the name – Gilded Age - appropriate for its era? The name Gilded Age is appropriate because to gild an object means to coat an undesirable object with gold leaf, gold that has been pounded out into thin sheets. The wealth of a few people hid the problems of society, including corrupt politics and widespread poverty. 8. Who came up the name Gilded Age? Mark Twain and Charles Warner came up with the name Gilded Age. 9. Why did the economy of the South grow slowly? The economy of the South grew slowly because the Civil War had left South and ruins and the much of the land was used for sharecropping. 10. How did the sharecropping system affect workers? Sharecropping affected the workers by forcing them to remain as workers on the land. The only way they could leave is if they were debt free. The price of cotton was very low which made it nearly impossible for sharecroppers to leave the farms.