The Formula For Creating A Successful Business - 2752 Words

Many people question whether there is a formula for creating a successful business. The answer to that question is no. The formula for a successful business is constantly changing due to various reasons. Business has evolved from shabby convenience stores corner to international corporations. There has been an unmistakable trend toward bigness in business since the mid-1980s. Corporate mergers are now very common and undoubtable effective. The US government regulates these businesses through antitrust laws. Corporate mergers and antitrust laws play a crucial role for producers and consumers. The historical backdrop of the American economy since the Civil War has become a corporate focus. A business game changer arrived at in the early†¦show more content†¦After years of groundwork by the Roosevelt and Taft administration, lawsuits were brought against the Standard Oil and American Tobacco trust. The Supreme Court believed that both companies used their bigness to gain power in each of their relevant entities. The Standard Oil trust forced the railroads, which was basic means of transportation of oil at the time, to give discounts and rebates on oil it shipped as well as oil shipped by its competitors. The Standard Oil trust used unlawful practices to force its rivals out of business. Due to the vague language the Sherman Antitrust Law was written rather vaguely, the Democratic Party passed the Clayton Antitrust Act in 1914. The Clayton Antitrust Act prohibited practices that lessened competition or tended to create a monopoly. The framework of the Clayton Antitrust Law banned five unlawful business practices. Price discrimination, Interlocking stockholding, Interlocking directorates, Tying contracts, and Exclusive dealings were the five bad business practices. The Federal Trade Act was passed in 1914. The Federal Trade Commission, also known as the â€Å"FTC†, purpose was to guard any antitrust anticompetitive practices that were outlawed by the Sherman and Clayton Act. By 1920 the courts had stripped the Federal Trade Commission of most of its powers. In