View a FREE sample

This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. When dividend payments stop, Carnegie plans a ________ exit to maximize Pacific's price by speculation that lets the triumvirate cash out and leave the remaining Pacific stockholders to drown.
(a) Four-step.
(b) Five-step.
(c) Three-step.
(d) Two-step.

2. Who is the cornerstone of Carnegie's fortune, followed in 1861 by Columbia Oil?
(a) Pullman.
(b) Coleman.
(c) Pennsylvania Railroad.
(d) Woodruff.

3. Pennsylvania Railroad buys from the Woodruff venture and offers what when borrowing?
(a) A discount on shipping.
(b) The credibility of a "big corporation."
(c) A great deal of collateral.
(d) The credibility of a "strong corporation."

4. Previously Margaret Carnegie's sisters, Annie Aitken and Kitty Hogan immigrate in __________, and write of good and bad times there.
(a) 1835.
(b) 1840.
(c) 1830.
(d) 1845.

5. Carnegie's first installment on his one-eighth interest in Woodruff is $217.50 borrowed from the bank. The balance is paid by dividends in the venture's ________ year.
(a) Fourth.
(b) First.
(c) Third.
(d) Second.

6. Who is Cuban Roberto Goizuetta?
(a) The deceased CEO of Intel.
(b) The deceased chairman of Coca-Cola.
(c) The deceased president of Liz Claiborne.
(d) The deceased chairman of Applebee's.

7. During the nineteenth century American railroads are financed by bonds with over ____ percent of their earnings used to pay bond interest.
(a) 30.
(b) 40.
(c) 20.
(d) 50.

8. This craft has been practiced by half its 11,000 people since when?
(a) Medieval times.
(b) The 18th century.
(c) The Renaissance.
(d) The 17th century.

9. Why does Pullman gives Carnegie enough Pennsylvania stock to collateralize a $600,000 loan?
(a) He is ignorant of this poor decision.
(b) He needs money.
(c) He believes it is one of his best ideas.
(d) He trusts Carnegie.

10. What does Andrew dislike about the oil business that seems beyond control of management until the 1880s and Rockefeller?
(a) The smell, messiness and waste.
(b) The instability of the economy.
(c) The destructive properties of oil.
(d) The fluctuation of price.

11. Carnegie is cautious in his investments by limiting them to what?
(a) Firms he knows about that are related to the Pennsylvania Railroad.
(b) Small firms.
(c) Firms he has studied for several months.
(d) Firms his friends suggest.

12. A new competitor, ________________ , decides a lavishly decorated "rolling palace" may have an edge, and by 1867 he has forty-eight in service.
(a) Gary M. Pullman.
(b) George M. Pullman.
(c) Geoff M. Pullman.
(d) Gerold M. Pullman.

13. Success is due to the first president, ________________, and the superintendent of the western division, Tom Scott, who brings Andrew Carnegie into the modern system of train control.
(a) J. Edgar Hoover.
(b) J. Edgar Johnson.
(c) J. Edgar Smith.
(d) J. Edgar Thomson.

14. It is _______________ private business firm in the world and is called "the standard railroad of the world."
(a) One of the smallest.
(b) The largest.
(c) One of the largest.
(d) The smallest.

15. What characterizes America?
(a) The "American car."
(b) The "American willpower."
(c) The "American dream."
(d) The "American pride."

Short Answer Questions

1. Margaret Carnegie's sister precedes her move to America and Annie Aitken provides them what?

2. Carnegie sells Central patents for ____________ to Pullman and they exchange shares for no money to form the new company.

3. In following years Carnegie gets at least ___________ for a net investment of $217.50 until 1870 when he sells out.

4. By ________, the Pennsylvania Railroad runs 3,500 miles of track with 30,000 employees and $61 million invested.

5. What demand adequate cash flow and net income for operating expenses and a dividend sufficient to maintain and attract capital to grow?

(see the answer keys)

This section contains 520 words (approx. 2 pages at 300 words per page) View a FREE sample