1. Why is business so important to a country’s economy?
Business is important to a country’s economy because it is its backbone. It is a constant battle for a better means of living. The economy gives individuals jobs and the ability to sustain themselves.
2. What is a private enterprise? 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 citizen? An economic system that rewards firms for their ability to identify and serve the needs and demands of customers, (capitalism).minimizes gov’t interference in economic activity. 4 rights are private property, profits, competition, and freedom of choice
3. In what ways is entrepreneurship vital to the private enterprise system? Entrepreneurs take risks in our private enterprise system;driving economic growth and force current companies to continue to satisfy consumer’s wants.Entrepreneurs often times bring a new product or service to the market(jobs) Entrepreneurs are a main force that propel private enterprise. Entrepreneurs possess the desire to start a business despite the risks involved, “An entrepreneur is someone who sees a potentially profitable opportunity and then devises a plan to achieve success in the marketplace and earn those profits” (Kurtz). The private enterprise system would not function correctly if not for the entrepreneurs that pressure previous companies to compete for customers. Entrepreneurship is also a vital part of the free enterprise system because it creates job opportunities, “Every year, they create more than one of every five new jobs in the economy.” (Kurtz) The new start up companies also create more jobs by allowing business owners to be self employed. New technology and innovations are often produced by these companies the most in areas that are new and have a low level of competition. Because of their limited resources, small businesses...
Please join StudyMode to read the full document