In the dismantling of Standard Oil, how many smaller companies did they divide into?

• A. 7
• B. 5
• C. 8
• D. 6

Answer: (A)

The main idea is how antitrust action can break up a dominant company to restore competition. When the Supreme Court ruled Standard Oil violated the Sherman Act in 1911, the remedy was to dissolve the trust by dividing it into independent firms that could compete with each other.

The breakup produced far more than a handful of companies—34 independent entities emerged, each running its own refining, distribution, and marketing operations in different regions. Over time, many of these entities merged and evolved into the major oil groups we recognize today, such as Exxon and Mobil (now ExxonMobil), Chevron (from Standard Oil of California), and Amoco (from Standard Oil of Indiana). So the historical fact is a large fragmentation, not a single-digit number.