5.7 Economic Developments and Innovations

Question 1

What is a corporation?

Answer 1

A business chartered (registered) by the government as a legal entity owned by stockholders.

Question 2

Stock market

Answer 2

A market where investors can buy stock or shares of a corporation.

Question 3

Monopoly

Answer 3

A business so large it eliminates all competition in its area e.g. John D. Rockefeller and his corporations owned so much of the oil industry in the United States he was able to eliminate most competition.

Question 4

Cecil Rhodes

Answer 4

British borne investor key to the expansion of British colonial rule from South Africa to Central Africa. Founded DeBeers Diamonds. Tried to get railroad to connect from Cape Town to Cairo. This failed.

Question 5

Transnational companies

Answer 5

Corporations that operate across national boundaries.
e.g.
* Unilever, a British AND DUTCH business that sold household goods, especially soap, across the world. Took its palm oil from its massive African planations.
* Hong Kong and Shanghai Banking Corporation, a British owned corporation focused on global banking.

Question 6

Sole-proprietorship

Answer 6

A business owned by a single person who is personally liabile for the liabilities of the business.

Question 7

o

Corporate liability

Answer 7

Corporations protect their individual investors from the business’ liability.

Question 8

Consumerism

Answer 8

The theory that consumer spending, or spending by individuals on consumer goods and services, is the principal driver of economic growth and a central measure of the productive success of a capitalist economy

Consumption drives production drives consumption

Question 9

In the late 1880s, the fast but dangerous “penny farthing” bicycle was r

Answer 9

Safety Bicycle