What are the most important elements of a free enterprise system?
economic system of free enterprise operates according to five main principles: the freedom to choose our businesses, the right to private property, the profit motive, competition, and consumer sovereignty..
What are the 4 factors of the free enterprise system?
A free enterprise system is based on four key principles: private property rights, profit motive, equal individual rights and unrestricted competition.
What 2 factors does the free enterprise system rely on?
Free Enterprise systems have a few key components:Economic Freedom. Economic freedom allows individuals to buy what they want, choose their occupation, employer, and job location. … Consumer Sovereignty and Voluntary Exchange. … Private Property. … Incentives and Profit. … Competition.
What makes a free enterprise system?
Free enterprise is a type of economy where products, prices, and services are determined by the market, not the government. It’s capitalism, not communism. Things that are free are unconstrained, and a business is an enterprise.