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Management for the sake of profit
Market mechanism action
CAPITALISM - or market economy is such system social
Interactions and divisions of labour which is based on a private property
On production assets. Material factors of production are in
Properties of separate citizens, capitalists and land owners. Production
At factories and farms businessmen and farmers, that is individuals will organise or
Associations of individuals which or are proprietors of the capital and
The earths, or have borrowed them or on hire basis from proprietors. Characteristic feature
Capitalism the free enterprise is. The purpose of any
The businessman - whether it be the businessman or the farmer - consists in reception
Capitalists, businessmen and farmers play the important role in economy sphere.
They stand at a steering wheel and conduct the ship. But they are not free to define its rate They
They do not order the ship, only the helmsmen obliged implicitly
To be subject to orders of the captain. The captain is the consumer.
Neither capitalists, nor businessmen, farmers do not define that should
To be made, are consumers do. Manufacturers make not for
Own consumption, and on the market. Their main objective - to sell the
Production. If consumers do not purchase the blessings offered it, the businessman not
Can pay back the expenses made it. It loses the money. If it cannot
To adapt the production for wishes of consumers, to it it is very fast
It is necessary to leave the exclusive position at a steering wheel. It
Other people who manage to satisfy inquiries of consumers is better will replace.
The valid owners in capitalist system of market economy
Consumers are. Purchasing or abstaining from purchases, they decide, who
Should possess the capital and operate the enterprises. They define that
It is necessary to make, and also, how many and what quality. Their relation
Pours out either in profit, or in losses for the businessman. They do
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