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Term Paper: Corporations and Big Business | Term Paper Queen

Before the 19th century, there were neither big businesses nor corporations. However later in the century, the judicial decisions and federal and state laws created an opportunity for the growth of big businesses.

Further, the organizational innovations and technological developments in manufacturing, transportation and communication created an atmosphere that enabled big businesses to be profitable. Initially, most of the businesses were merchant capitalists with the decision made by the owner alone or assisted by his family members or partners. The biggest business enterprise was known to hire only fifty workers.  The dramatic revolution in business changed dramatically in 1815-1840 with increased economies of scale and machinery use. Since every investor was allowed to invest in stock, it was easy for the corporations to raise high amounts of capital. This then led to corporation creation.

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