List and Briefly Describe the Four Fundamental Assumptions of Free-Market

question 74

Essay

List and briefly describe the four fundamental assumptions of free-market economics.

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Definitions:

Shareholders

Individuals or entities that own share(s) in a corporation, granting them certain rights like receiving dividends and voting at shareholders' meetings.

Hostile Takeover

An acquisition attempt by a company or individual to obtain control of another company against the wishes of the target company's management and board of directors.

Duty Of Loyalty

A fiduciary responsibility that requires individuals to act in the best interest of another party, such as a corporation or its shareholders.

Duty Of Care

An obligation to take reasonable care to avoid causing harm to another person.