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Contemporary Business 14th Edition by Louis Boone, David Kurtz
Edition 14ISBN: 9780470531297Contemporary Business 14th Edition by Louis Boone, David Kurtz
Edition 14ISBN: 9780470531297 Exercise 2
What is a private enterprise system? What four rights are critical to the operation of capitalism? Why would capitalism function poorly in a society that does not ensure these rights for its citizens?
Explanation
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Private enterprise system is the basic economic system which prizes companies for their ability to serve and identify the needs and demands of the customers.
The four basic rights critical to the operations of capitalism are as follows:
1) Private property : It is the basic right under private enterprise which gives a participant right to buy, sell, and own most forms of properties, including tangible and intangible assets.
2) Competition : This provides the right to fair competition preventing any undue and excessive activity by individual firm.
3) Profits : This gives the right to owners to own profit after taxes for their activities.
4) Freedom of choice : This right gives the power to citizens for choosing their own purchases, investments, and employment.
Capitalism will suffer badly without these rights as their absence will prevent any business from starting and growing freely. It would take the economy to downturn and thus negating the fundamentals of capitalism.
The four basic rights critical to the operations of capitalism are as follows:
1) Private property : It is the basic right under private enterprise which gives a participant right to buy, sell, and own most forms of properties, including tangible and intangible assets.
2) Competition : This provides the right to fair competition preventing any undue and excessive activity by individual firm.
3) Profits : This gives the right to owners to own profit after taxes for their activities.
4) Freedom of choice : This right gives the power to citizens for choosing their own purchases, investments, and employment.
Capitalism will suffer badly without these rights as their absence will prevent any business from starting and growing freely. It would take the economy to downturn and thus negating the fundamentals of capitalism.
Contemporary Business 14th Edition by Louis Boone, David Kurtz
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