Why Did Railroad Companies and Other Businesses Form "Pools" During

question 111

Multiple Choice

Why did railroad companies and other businesses form "pools" during the American Gilded Age?

• A) They wanted to cut each other out from the market.
• B) They hoped to escape the chaos of market forces by fixing prices with their competitors.
• C) They hoped to gather enough capital in a pool in order to buy out their largest and most dangerous competitor.
• D) They wanted to share their assets in order to maintain liquidity in times of financial panic.
• E) They were sharing patents for new technologies in the railroad industry.

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Definitions:

Financial Benefits

Advantages gained in monetary terms, such as increased revenue, cost savings, or improved profit margins.

Tax Advantages

Financial benefits derived from tax laws, such as deductions or credits, which reduce the tax liability for individuals or businesses.

Reduced Debt

A financial condition indicating a decrease in the amount of money owed by an individual, company, or government.

Cultural Transformation

The process of fundamentally changing the underlying values, beliefs, and behaviors of an organization to achieve lasting organizational change.