Aristotle Recognized Six Basic Types of Government and Categorized Them

question 7

Essay

Aristotle recognized six basic types of government and categorized them as either a good form of government or a perverted form of government.Explain what Aristotle meant by a perverted form of government and why he classified democracy as a perverted form of government.

---

Definitions:

Unlevered

Pertaining to a business or investment that does not involve borrowing, thereby not subject to the risks and rewards of leverage.

Tax Loss Carry Forward

A tax rule allowing businesses or individuals to use a net loss in one period to offset a profit in future periods for taxation purposes.

Interest Tax Shield

The reduction in income taxes that results from the deductible nature of interest payments on debt.

Debt Financing

A method by which companies or governments raise capital by borrowing funds, usually from a financial institution or through the issuance of bonds.