Summarize characteristics of a free enterprise system

1
Summarize characteristics of a free enterprise
system
2
Free enterprise is

• Private enterprise
• Supply and Demand
• Entrepreneurs

3
The principles of a free enterprise system
are(cont)

• Freedom of ownership
• Competition
• Direct competition
• For example McDonalds vs.
• Burger King

4
The principles of a free enterprise system
are(cont)

• 2. Indirect competition
• For example McDonalds vs.
• Applebees
• 3. Price competition
• For example Wal-Mart
• 4. Non-price competition
• For example Nordstorm

5
The principles of a free enterprise system are
(cont)

• 5. Monopolies sole control over a product and
  the means of producing it.
• Risk potential for loss or failure
• Profit All money left over from sales after
  expenses have been paid the incentive for
  entrepreneurship

6
How does competition affect buyers sellers?

• Buyers

• Sellers