CORPORATION
PARTNERSHIP
Professions are based on custom and historical precedent. People do the same jobs as their parents regardless of ability or desire.
CENTRAL planning of the economy. Very little or no competition - government owns the means of production.
PROPRIETORSHIP
FREE MARKET ECONOMY
MIXED ECONOMY
Business organized to operate as a legal 'person'. Risk is determined by amount of investment. Least risky!
TWO or more owners share the risk and the profits in a business.
ONE owner takes all the risk but gets all the profit in a business.
TRADITIONAL ECONOMY
COMMAND ECONOMY
Individuals, businesses, and the government share economic decision making. The Government controls the PUBLIC sector and individuals/businesses control the private sector.
PROFIT motivates economic decision making. Supply and demand determine price and consumer sovereignty determines production. Private property!
