MGMT 1040 Study Guide - Invisible Hand, Corporate Welfare, Planned Economy
Document Summary
Capitalism- an economic system in which the major portion of production and distribution is in private hands (eg manufacturing firms, banks), operating under with is termed a profit or market system. Owned by individuals (capitalists) who determine what and how much to produce, production goals, etc. Socialism-an economic system characterized by public ownership of property and a planned economy. Owned by public bodies- decisions made by government. Mixed economy- adopted by contemporary countries- and economic system that combines features of both capitalism and socialism. Formed during the 15th and 16th century in the renaissance in europe. Before than businesses were organized through guilds (associations of individuals of the same trade) Hans fugger-weaver, family business, it grew and expanded and turned into a great german dynasty. It was termed mercantile capitalism because it was based on mutual dependence between state and commercial interests. Industrial capitalism-associated with the development of the large-scale industry.
