When many people think of competiton they automatically think of a bad thing. I disagree and think that competiton is what keeps our economy balanced. Competition is very important and gives us the option to choose what we want which is very important. Without competition business owners can increase the price of their product or decrease the efficiency of their product and not have to worry about customers buying the same product for less at a different business. I think the right to decide which product is worth buying is very important and is why competiton is good. A corporation is "an association of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members." This means that a corporation is basically a type of business where there is no one owner of the company. Corporations are by far the most popular type of business. I think that this is very beneficial to business competition. With a corporation there is limited liability which will make it hard for the company to crash. If the company doesn't crash no jobs are lost and there is still competition. Also corporations give businesses bigger chances to expand which creates more jobs. Overall I think that corporations are very important in promoting competition.
First, a corporation is business that is funded by shareholders who buy stocks in that business. In the late 1800s, businesses that wanted to grow but did not have enough money to do so would turn into corporations in order to raise money. Since, the idea of corporations was new in the 1800s there were few laws or regulations on such businesses. Therefore, the corporations had a negative effect on business competition. Powerful, economic corporations wiped out small, family businesses and other competitors. Consequently, they became monopolies, or businesses that controlled certain industries with little or no competition. These monopolies could sell products for unreasonably high prices because there were no other businesses to offer lower prices to consumers. Examples of these domineering monopolies that were formed from corporations in the 1800s are John D. Rockefeller’s oil industry and Andrew Carnegie’s steel industry. These two corporations contributed to the negative effect of business competition during this time.
My opinion is that the monopolies poorly affected business competition in the 1800s. Many small, family owned businesses that had been around for years and hoped to be around for more years were completely annihilated by these economic giants. Also, with the western expansion several people started their own businesses as a new start to the expansion. However, when the first corporations were made and started attracting more consumers the small business owners were not as successful. As a result, these owners who had hopes and plans of starting a new, better life in the west had their dreams crushed by the financial monsters we call corporations.
Thanks, I needed a better understanding of this learning.
Reply
Molly Buring
2/21/2010 08:42:31 am
First of all, a corporation is a business owned by several different people who buy it's stocks. Corporations affect business competitions, but not so much. Like corporations mainly compete with other businesses. Like most businesses compete with the type of businesses selling the type of things that they are selling so that they get a good crowd and they're competitors don't. For example Schnucks and Kroger are totally competitors. They might not be corporations though, I'm not sure, but they totally compete against each other because they are both great grocery stores. Also, free enterprise is a big part of it. America has a free enterprise system. That means that businesses and corporations are able to set they're own prices for goods and services. How that affects the competition of different businesses is that one store might set prices a lot lower for one shirt than another store with that one shirt, so the first store would get more customers. But to sum it all up, free enterprise and basic competition affect businesses.
sources: my dad http://dictionary.reference.com/browse/corporation
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