Business in the late 1800's
In the late 1800's business began to grow. As the economy advanced due to the creation of railroads, production of steel, and discovery of oil. Business's began after the civil war because the economy rose, and therefore so did the creation of jobs.
One of the first and smallest business's was called a proprietorship.
~Owned by one private citizen
~makes decisions for the whole business
example: Someone who opens up their own photography business. They book all the appointments, take care of the clients, hire workers, pay the bills and make all decisions individually.
The next type of business was called a partnership:
~owned by two or more people
~shared responsibilities of the business (bills, hiring, etc.)
~made decisions together
example: A family restaurant owned by BOTH parents of the family. They collaborate over all the big and small decisions made and share all the bills and responsibilities.
The last and largest type of business was called a corporation:
~owned by stockholders
~stockholders gave money to the company in order to help pay for the business
~stockholders had no control over the decisions made
~stockholders made or lost money, depending on how well the business does, by selling the stocks
example: someone who buys a run-down house and uses their money to "flip" it (fix it up) and sells it for more of less money than they bought it for, depending on how successfully they "flipped" the house.
~board of directors is a group of people who made all the MAJOR decisions for the corporation (the bosses)
~board of directors hires corporate officers
~corporate officers are hired to make the smaller, day-to-day decisions and to run the corporation
example/connection: Andrew Carnegie started out as a stockholder by investing in iron, oil, railroad and telegraph industries. Because of the success of these business he made enough money to start his own Carnegie Steel Company, that later ended up dominating the U.S. steel industry.
Elena Grimaldi, Gwen Franklin, and Kylee Rollins