All entrepreneur is looking for an acceptable RETURN ON INVESTMENT (ROI). ROI: is the money gained from taking a business venture risk. In addition to money, investment of time is also an important consideration for businesspeople. Countries with high taxes and restrictive regulations tend to drive out entrepreneurs, while countries with low taxes and less restrictive regulations attract entrepreneurs. What can government do?: Ways that the government can actively promote entrepreneurship include: Allowing private ownership of businesses (some governments are even selling government companies to the private sector) Minimize the interference with the free exchange of goods and services Pass laws that enable businesspeople to write contracts that are enforceable in court, Establish a currency that is tradable in world markets. Tradable currency: is money that is allowed to be exchanged for another country’s money. Must help minimize corruption in business and in their own ranks. Corruption can be found not only in large companies but in small businesses as well, and its important to takl it in both. investing in stocks(i.e. becoming owners in corporations). Board of directors: is a group of people that oversee the activities of a corporation, it is generally a mix of a small number of company executives and a greater number of outsiders.( because they oversee the whole corporation, it is a very serious problem if they get involved in unethical behavior). The capitalist system: is one in which the companies and businesses are owned by the citizens instead of the government. The capitalist system relies heavily on honesty, integrity, and high ethical standards, and failure to adhere to those fundamental standards can weaken the whole economical system. The Technological Environment: People creat tools all the time to make their life easier. Business have always been affected and even transformed by technological development.
All entrepreneur is looking for an acceptable RETURN ON INVESTMENT (ROI). ROI: is the money gained from taking a business venture risk. In addition to money, investment of time is also an important consideration for businesspeople. Countries with high taxes and restrictive regulations tend to drive out entrepreneurs, while countries with low taxes and less restrictive regulations attract entrepreneurs. What can government do?: Ways that the government can actively promote entrepreneurship include: Allowing private ownership of businesses (some governments are even selling government companies to the private sector) Minimize the interference with the free exchange of goods and services Pass laws that enable businesspeople to write contracts that are enforceable in court, Establish a currency that is tradable in world markets. Tradable currency: is money that is allowed to be exchanged for another country’s money. Must help minimize corruption in business and in their own ranks. Corruption can be found not only in large companies but in small businesses as well, and its important to takl it in both. investing in stocks(i.e. becoming owners in corporations). Board of directors: is a group of people that oversee the activities of a corporation, it is generally a mix of a small number of company executives and a greater number of outsiders.( because they oversee the whole corporation, it is a very serious problem if they get involved in unethical behavior). The capitalist system: is one in which the companies and businesses are owned by the citizens instead of the government. The capitalist system relies heavily on honesty, integrity, and high ethical standards, and failure to adhere to those fundamental standards can weaken the whole economical system. The Technological Environment: People creat tools all the time to make their life easier. Business have always been affected and even transformed by technological development.
chapter1.docx