MGTA01H3 Chapter Notes - Chapter 6: Risk Aversion, Julian Rotter
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MGTA01H3 Full Course Notes
Verified Note
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Document Summary
Free enterprise individuals have the freedom to start and run businesses without bureaucracy and undue regulation. No need for governmental permission or informing: individuals must pay taxes if they make over ,500, estimated 2. 4 million small businesses. Private sector the part of the economy that is run by private individuals, usually to make a profit. Sme (small and medium sized enterprises)- less than 500 employees: fewer than 100 employees = small, 100-499 = medium, 500+ = large. Longer a business survives, the more likely it is to survive longer: (cid:862)failure(cid:863) (cid:272)a(cid:374) (cid:373)ea(cid:374), shutti(cid:374)g do(cid:449)(cid:374), shutti(cid:374)g do(cid:449)(cid:374) (cid:271)ut still ha(cid:448)i(cid:374)g made profit, death of owner etc. Entrepreneurs - the people who are motivated to take the time, to incur the costs and risks, and make the effort to earn reward. Entrepreneurship - the willingness or the motivation to take initiative, and to accept the risk of failure in return for a reward: a desire to achieve challenging goals.
