The Free Enterprise System. What is “Free Enterprise”?. Free: Having liberty; not controlled by others. Enterprise: An undertaking or project; readiness for daring action. Therefore, we can define Free Enterprise as:
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Having liberty; not controlled by others.
An undertaking or project; readiness for daring action.
Therefore, we can define Free Enterprise as:
Being at liberty to undertake a daring action without being controlled by others.
If allowed, what action will the individual undertake?
Individuals, when allowed, will pursue their own self-interest
the right of the individual to pursue his own self-interest will bring about the greatest benefit to society as a whole.
WHERE IN THE WORLD DID THEY GET THAT IDEA?
A business is an organization that provides goods and/or services to earn a profit.
So, in Free Enterprise,
the individual forms a business in order to pursue his own selfish interests (make a profit)
How much profit?
As risk increases, so should the opportunity for return on the investment.