Question

To gain more capital for industrial expansion, small companies: formed corporations borrowed money from banks produced more goods formed partnerships

Answer 1

To gain more capital for industrial expansion, small companies formed corporations. This was not a universal truth, but took place in budding economies in the 19th century.

Answer 2

The correct answer is B) borrowed money from banks.

To gain more capital for industrial expansion, small companies: borrowed money from banks.

Many companies during the industrial expansion had to borrow money from credit institutions because as small companies they were, they did not have enough money to finance their operations. Those companies were at the beginning stage of existence and the easiest way to get some cash was to ask loans to banks.