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Greg Flahive is From California, USA, and Greg Flahive is an entrepreneur and he always continuously comes up with new ideas and starts new businesses.<br>
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GREG FLAHIVE How Corporation is important to business growth ?
?Business grew larger and many organized into corporations ?Corporations: large, organized companies owned by shareholders ?Carnegie, Rockefeller and other leaders were criticized for forming large companies ?Critics believed big business was too powerful ?They became monopolies ?Monopolies: large corporations that have little competition
?Monopolies can charge higher prices for poorer quality products ?They can do so because they do not have competition from other companies selling the same product ?The buyers have no choice but to pay that price or do without the product
?They are a safe form of business ?People invest money in a corporation ?They are protected if the corporation fails ?Investors have limited risk or liability for the debt ?People can buy stock in the company with capital (money), in which they earn money ?Major corporations made millions by selling stock
?Leaders searched for new ways to organize companies ?Vertical combination: a business that controls each step in making something ?Carnegie bought mining and transportation to help his company produce steel ?Horizontal combination: buying one’s competition ?Rockefeller bought out other oil refineries to control oil production
?They took business away from the competition and became monopolies ?They were then called trust companies ?Trust Companies: A large, powerful company that often is called a monopoly ?Businesses were able to increase their wealth ?Could employ thousands of workers ?Became giant industries and very powerful
