Unformatted text preview: quipment or expand
geographically, an enterprise has to spend money — on marketing research, product
design, prototype development, legal expenses associated with patents, lining up
contractors and so on… Rather than incur such expenses, companies increasingly
prefer to pay their executives exorbitant bonuses, or issue special dividends to
shareholders, or engage in purely financial speculation. But this means they also
short-circuit a major driver of economic growth.
Are Profits Hurting Capitalism? NYT, 7/6/2010 Take-aways
Entrepreneurship is not easy! It requires excellent
opportunity recognition skills, education and experience,
and a set of specific personal and professional skills.
However, it can offer great rewards, all the way from
personal satisfaction and growth to large financial wealth;
Most businesses are small, and require entrepreneurial
There are many ways to organize a business. In terms of
flexibility and ability to grow, the corporation form is the
most successful form of organization in the U.S. economy;
The corporate form of organization creates conflicts of
agency and social allocation of resources.
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