Question 1

What form of communication was integral to the growth of multistory headquarter buildings?

Accepted Answer

The telephone was integral to the growth of multistory headquarter buildings as it allowed for quick and efficient communication between different floors and departments. This made it easier for businesses to operate on a larger scale and expand vertically.

Question 2

What was the most significant development to the evolution of business circa 1910?

Accepted Answer

The mass-production technology, pioneered by Henry Ford with the introduction of the moving assembly line in 1913, had a significant impact on the evolution of business in the early 1900s. It allowed for the efficient production of standardized products at a lower cost, which led to increased consumer demand and growth in industries such as automotive and consumer goods.

Question 3

What does it mean for a manufacturing firm to vertically integrate?

Accepted Answer

Vertical integration involves a company owning and controlling multiple stages of the production process, including producing raw materials and distributing finished goods. By doing so, the company can have more control over the quality and cost of inputs and outputs, and potentially gain a competitive advantage.

Answer: A 
 While vertical integration can involve producing raw materials, it can also involve expanding the company's product line to offer a wider variety of products using established technologies. This can also provide a competitive advantage and increase market share.

Answer: B, E 
 Reorganizing management into semi-autonomous divisions and using management consultants to optimize processes are not specific examples of vertical integration.

Question 4

Which of the following did not contribute to the high transaction related risks for U.S.potato sales in 1840?

Accepted Answer

The competition from European merchants would have contributed to the high transaction related risks for U.S. potato sales in 1840, as it would have further increased the uncertainty and volatility in the market. All the other options - infrequency of transactions, changing transaction partners, lack of availability of sales and prices for comparable goods, and geographic distance between buyers and sellers - would have also added to the risks involved in potato sales during that time.

Question 5

What was one of the first plant/factory types to use the "American System" of manufacturing?

Accepted Answer

The American System of manufacturing was first used in the firearms industry by Eli Whitney in the early 19th century. The system, which included standardized parts and the use of interchangeable parts, greatly increased efficiency and lowered production costs. It was later adopted by other industries, including steel, automobiles, and chemicals.

Question 6

Which of the following government regulations on business conditions did not increase circa 1910?

Accepted Answer

The answer of Which of the following government regulations on...

Question 7

What is the accounting concept of inventory turnover as developed by Sears in the late 19ᵗʰ century?

Accepted Answer

The answer of What is the accounting concept of inventory...

Question 8

What significant transportation event brought about the first significant growth of the Great Lakes region?

Accepted Answer

The opening of the Erie Canal in 1825 allowed for cheap transportation of goods between the East Coast and the Great Lakes region, leading to the area's first significant growth boom. Prior to the canal, transportation costs were prohibitively high, limiting growth and development in the region.

Question 9

What caused railway transportation to remain the primary transportation source over trucking until World War II?

Accepted Answer

The country lacked an interstate highway system until the mid-20th century, making railways the only reliable mode of transportation for moving goods over long distances. Additionally, there were more extensive rail networks and infrastructure in place, making it easier and more efficient to transport goods by rail.

Question 10

Which of the following led to overbuilding of railroads in the 1860's and 1870's?

Accepted Answer

The availability of financing due to public optimism led to overbuilding of railroads in the 1860's and 1870's, as there was a widespread belief that railroads would bring economic prosperity and investing in them would yield high returns. This resulted in competition between railroad companies and led to the construction of more railroads than were needed, resulting in overbuilding.

Question 11

What is throughput?

Accepted Answer

Throughput refers to the movement of inputs and outputs through a production process. It measures the rate at which a system can produce its output or the amount produced within a given period.

Question 12

What economics game theory concept is demonstrated by the Erie Canal public works project?

Accepted Answer

The answer of What economics game theory concept is demonstrated...

Question 13

What was the major role of private banks in the early 1800s?

Accepted Answer

The major role of private banks in the early 1800s was to issue credit, which allowed individuals and businesses to borrow money for various purposes such as investing in new ventures, expanding existing businesses or buying land. Private banks were seen as a crucial source of capital for economic growth in the era, allowing for the creation of new jobs and the development of infrastructure. While private banks also served as institutions for deposits and offered other financial services like selling stocks or creating futures markets, their role as issuers of credit was the most significant.

Question 14

What mode of long-distance communication first laid the groundwork for today's modern communication forms?

Accepted Answer

The answer of What mode of long-distance communication first laid...

Question 15

What was a key contribution to the dominance of the family-run small business in 1840?

Accepted Answer

The development of infrastructure, such as roads and canals, facilitated the distribution of goods and services, which was crucial for the success and dominance of family-run small businesses in 1840.

Question 16

What firm is generally regarded as being the first to extensively use mass production processes?

Accepted Answer

Ford is generally regarded as being the first to extensively use mass production processes. Ford's introduction of the moving assembly line in 1913 revolutionized manufacturing and allowed for the mass production of automobiles at a lower cost.

Question 17

What caused the market conditions facing the telephone to be uncertain until the 1880's?

Accepted Answer

Patent conflicts caused uncertainty in the market conditions for the telephone until the 1880s, as various inventors and companies were involved in legal battles over the rights to the technology.

Question 18

Matchmakers between manufacturers and sellers are called:

Accepted Answer

Brokers are intermediaries who match manufacturers with potential buyers or sellers. They do not own the products they sell but earn a commission for facilitating the transaction. Agents typically act on behalf of the manufacturer, while factors provide financial services such as factoring or financing. Merchants are typically retailers who sell goods directly to consumers.

Question 19

Which of the following led to the development of the financial infrastructure pre- 1910?

Accepted Answer

The systemization and circulation of credit information through the creation of credit bureaus such as Dun & Bradstreet and the Retail Credit Company (later known as Equifax) played a significant role in the development of the financial infrastructure pre-1910. This allowed lenders to assess the creditworthiness of potential borrowers and led to the standardization of credit terms and interest rates. The other options listed did not have a significant impact on the development of the financial infrastructure pre-1910.

Question 20

What significant government infrastructure project led to the development of national stock and commodity markets?

Accepted Answer

The construction of the Transcontinental Railroad connected the East and West coasts of the United States, greatly facilitating transportation and communication across the country. This allowed for the development of national stock and commodity markets, as goods and information could be exchanged more quickly and efficiently between regions.

Quiz 1: The Power of Principles: A Historical Perspective