Examples Of Free Enterprise

Free enterprise is an economy where there are different products, prices, and services, and this economy is capitalism. There are many different types of examples like this one, There are two gas stations one is on the right side of the street, and the other is on the left side of the street. It is basically a competition between the businesses it is based on which one of the businesses has a better product for the better price. So if one gas station has the better gas for the better price more of the population and buyers will be going to that gas station. What most people don't realize that everytime they go out and spend money they are in the process of free enterprise, another example is going to a grocery store and you see any item in

Some companies may have the better quality product but the other will put quantity over quality that is what the businesses are trying to do, they are just trying to hit a certain percent of the buyers population to make their business increase in economic wealth. Basically these business are making money because they are targeting the different “groups” of people. Free enterprise is basically companies that revolve around the people. “It is important to note that free enterprise systems can vary and differ in how 'free' they actually are. The United States and Singapore are two examples of countries that reflect the most free enterprise systems. Many European countries are also considered free enterprise markets, but often have more government regulations and involvement in business transactions when considered

There are Different types of risks like Market Risk, Liquidity Risks,Concentration Risk, Credit Risk, Reinvestment Risk, Inflation Risk Horizon Risk, Longevity Risk, and Foreign Investment Risk. When you have a market Risk there is a chance of decreasing the value of the business if they make an outrageous investment that was not necessary there is a chance to ruin their business and loose money and they can be forced to lower prices make cuts whatever they have to do to preserve money and possibly be forced out of the marketing business. There is Liquidity Risk where you invest in something and expect that one item/business to make money but then it doesn't then the company or individual has to lower the price and loose money. Concentration Risk is being all in on one investment and it ending failing and putting you in a economic hole. Credit risk is like when you like ask for a invest money for a bond and you can get caught up in economic conflicts and wont be able to pay or repay it off. Inflation Risks involved with a company or individual owes money or in deep debt because of a bad choice in investment opportunities. And this leads to companies to decrease in “value” and in the buyers eyes. There is also Horizon risk which can lead to unemployment or you can lose all the stuff you infested in and wanted to keep for a long time and if you have to sell it during a time when all of the markets are down, you will most