20th century big business

laissez faire

hands off

capital

amount of money, property, or other resources needed to start a business

why were companies corporations?

to afford a larger business and lessen the risk of financial failure with limited liability

negative aspects of corporation

can become monopolies and negatively affect small businesses/consumers

monopoly

a market structure characterized by a single seller, selling a unique product. they have no competition and control production, supply, quality, price, and wages

what did america’s first business laws regulate?

trusts, monopolies, and unfair business controls

why was it importat for the us government to legislate protections against monopolies?

to maintain a capitalist society so monopolies don’t eliminate their competition

ideal capitalism by adam smith

if govt doesn’t intervene, economy would thrive bc companies would create low $/high quality goods out of competition