List and Explain the Three Components of Classical Capitalism and the Three

question 35

Essay

List and explain the three components of classical capitalism and the three components of socialism.

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Definitions:

Retained Earnings

The portion of a company's profit kept in the business after dividends are paid, used for reinvestment or paying down debt.

New Equity

The issuance of additional shares of stock by a company to investors, typically to raise capital for business expansion or operational needs.

Board of Directors

The board of directors is a group of individuals elected by shareholders to oversee the management and governance of a corporation.

Issue Dividends

The process by which a company distributes a portion of its earnings to its shareholders.