1,750
13
Essay, 2 pages (300 words)

A definition of capitalism

Capitalism Neo ical economists have their own view on capitalistic businesses. However, according to Hunt and Lautzenheiser, there are unforeseeable attributes that influence the capital of a business (4). These factors are part of collective social factors that would eventually affect consumption as well as production. This realisation is what made the two authors have their own definition of economic systems. In essence, a business normally defines capital as the cumulative sum that is expressed in all tangible assets; whether fixed or even variable. However, the two authors argue that the social factors which affect the business should also be put into consideration while determining the capital needed for a business venture. These factors are fundamental in the operation of a business if returns are to be made. The assertion by the two is true. If any factor affects production, for instance, it should be incorporated in the economic postulations of the business. This is because if the factor has a negative effect on the business, then it would offset the returns of the same. Likewise, if the factor contributes positively to the business, then it would be like an asset to the same. Consequently, this makes it important to consider such factors as the social relations which would affect the business. Some of these factors include the environmental attributes within which the business is operating in. For instance, they can be factors such as investors’ confidence or even political stability. A good environmental boosts the business while a contrary one will be detrimental to the business. Bearing this in mind, it is true that social relations are the unseen part of a business’ capital.
Works Cited
Hunt, E. K. and Lautzenheiser Mark. History of Economic Thought: A Critical Perspective. NewYork: M. E. Sharpe, 2011. Print.

Thank's for Your Vote!
A definition of capitalism. Page 1
A definition of capitalism. Page 2

This work, titled "A definition of capitalism" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2022) 'A definition of capitalism'. 25 September.

Reference

AssignBuster. (2022, September 25). A definition of capitalism. Retrieved from https://assignbuster.com/a-definition-of-capitalism/

References

AssignBuster. 2022. "A definition of capitalism." September 25, 2022. https://assignbuster.com/a-definition-of-capitalism/.

1. AssignBuster. "A definition of capitalism." September 25, 2022. https://assignbuster.com/a-definition-of-capitalism/.


Bibliography


AssignBuster. "A definition of capitalism." September 25, 2022. https://assignbuster.com/a-definition-of-capitalism/.

Work Cited

"A definition of capitalism." AssignBuster, 25 Sept. 2022, assignbuster.com/a-definition-of-capitalism/.

Get in Touch

Please, let us know if you have any ideas on improving A definition of capitalism, or our service. We will be happy to hear what you think: [email protected]