profit competition right to private enterprise freedom of choice right to private property
TRANSCRIPT
Five Pillars of American Enterprise
ProfitCompetition
Right to private enterprise
Freedom of choiceRight to private property
Profit
Profit is defined as the surplus a business has left after all expenses of running the business have been deducted from the total income.
The prospect for profit is the driving force of American Enterprise.
Competition
Competition is the rivalry among businesses for the same consumers.
In order for businesses to keep their consumers coming back for their good and/or service, competition among businesses forces businesses to always produce the best good and/or service they can.
Right to private enterprise
Private enterprise enables not only business owners but also consumers to make choices. Business owners have the choice to decide what, when, and how they will produce their product.
This also gives consumers the choice to decide which products they will purchase, when they will purchase them, and also where they will purchase the product.
Freedom of choice
Freedom of choice gives individuals the independence to make their own decisions.
Business owners have the decision of what to sell and consumers have the decision where to buy.
Right to private property
The right to private property enables people to own, use, and dispose of things of value at their own expense.
Business owners must be sure that laws are upheld so that when a new product is invented, no other person but the inventor may produce that product unless he or she agrees to the production.