BUS061 HW1

BUS061 HW1 - Sharon Ng Professor Diamond BUS061 10 July...

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Sharon Ng Professor Diamond BUS061 10 July 2011 Chapter 1 Homework 1.) What is meant by managerial capitalism and why is this type of capitalism important to the U.S. economy? Answer: Managerial capitalism refers to capitalistic enterprises administered by managerial executives rather than by owners. When the power is given to the well- paid managerial executives instead of the owners, it benefits the U.S. economy because this means that very capable people who have more experience and education technically run the business, so consumers can trust their products. 2.) What are the various assumptions underlying the market capitalism model? Answer: Some assumptions of the market capitalist model include: Government interference in economic life is slight (laissez-faire). Individuals can own private property and freely risk investments. Consumers are informed about products and prices and make rational decisions. Moral restraint accompanies the self-interested behavior of business.
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BUS061 HW1 - Sharon Ng Professor Diamond BUS061 10 July...

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