Capitalists Do Not Assume the Risk That They Will Not

question 16

True/False

Capitalists do not assume the risk that they will not be able to realize a positive yield from their investments and ideas.

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Definitions:

Communist Central Planning

A system where the government makes all decisions about the production and allocation of goods and services in an economy.

Personal Gain

The benefit or advantage one receives or aims to receive from an action or investment, often measured in terms of financial or personal satisfaction.

Market System

A system of economics where the choices about investment, production, and distribution rely on the principles of supply and demand, and the pricing of goods and services is established freely in the market.

Business Risk

The potential for losses or less than expected returns stemming from the operational aspects of a business.