nunu notes

Definition: A system where the means of production (factories, businesses) are privately owned and operated for profit.
Key Characteristics:
- Private Property: Individuals and businesses have the right to own property.
- Market Economy: Prices and wages are determined by supply and demand.
- Limited Government: The government enforces laws but does not interfere much in the market.
- Profit Motivation: Businesses seek to maximize profits, which leads to competition.
- Wealth Inequality: Wealth is based on the ability of individuals and businesses to succeed in the market.
Revenue Generation: Profits are generated by selling goods and services in the marketplace.
Criticisms:
- Inequality: Capitalism can result in significant wealth inequality.
- Monopolies: A few large companies can dominate markets, reducing competition.
- Exploitation: The focus on profit may lead to poor working conditions or environmental harm.

Definition: A political and economic system in which the government owns all means of production and wealth is distributed equally among citizens.
Key Characteristics:
- Collective Ownership: No private property; all resources are owned by the state or the community.
- Central Planning: The government makes all decisions about production, pricing, and distribution.
- No Classes: Communism aims to eliminate social classes and wealth disparities.
- Equality: The goal is to ensure equal access to resources for all citizens.
Revenue Generation: Revenue is generated through state-run industries and taxes.
Criticisms:
- Inefficiency: State control can lead to inefficient resource allocation.
- Lack of Innovation: The absence of competition may reduce the incentive for innovation.
- Authoritarianism: The government’s control over the economy can extend to control over people’s lives.

Capitalism: Wealth is distributed based on individual effort, business success, and market conditions, often resulting in income inequality.
Communism: Wealth is equally distributed among citizens by the government to eliminate the wealth gap, but it often leads to inefficiency and corruption in practice.

Capitalism: The government protects private property, enforces contracts, and ensures competition, but does not heavily interfere in market operations.
Communism: The government plays an active role, controlling the economy and making key decisions about resources, pricing, and distribution to eliminate competition and inequality.

Capitalism: Private ownership of property is fundamental. Individuals or businesses control their resources.
Communism: No private property; all resources are collectively owned or controlled by the state.

Capitalism: Profit drives business strategies, maximizing profit through competition and selling goods/services.
Communism: The focus shifts from profit to meeting citizens' needs; profits are reinvested into the system.

Capitalism: Revenue generated by selling products and services encourages innovation and efficiency.
Communism: Comes from state-owned industries or taxes; used to maintain state control and provide for citizens.

Capitalism: Uneven distribution based on individual success and market dynamics.
Communism: Aims for equal distribution, ensuring no one has more than others.

Supply: Quantity of a good/service producers are willing to sell at various prices.
Demand: Quantity of a good/service consumers are willing to buy at various prices.
Price Determination: In capitalism, prices fluctuate based on supply and demand interaction; in communism, prices are set by the government, potentially leading to shortages or surpluses.

Capitalism: Limited role, focuses on maintaining competition and fairness in markets, enforcing laws for protection.
Communism: Total control over economic activity, dictating production, pricing, and wealth distribution.

Capitalism:
- Private property is fundamental; individuals create wealth through competition.
- Revenue generation occurs via goods/services sales.
Communism:
- All property is collectively owned, government-controlled economy.
- Wealth distributed equally among citizens.

Definition: EPS is a financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock, vital for assessing profitability and financial health.
Formula: EPS = (Net Income − Dividends on Preferred Stock) / Outstanding Shares.
Use: Key indicator of company performance, closely watched by investors and analysts.

Definition: Assets are resources owned by an individual or company expected to bring future economic benefits.
Types:
- Current Assets: Can be converted to cash within a year (e.g., cash, inventory).
- Non-Current Assets: Long-term assets not easily converted to cash (e.g., property).
Importance: Understanding assets is crucial for assessing financial positions; a balanced asset roster indicates financial stability.

Mixed Economy: Combination of both capitalism and communism principles, regulating certain industries while allowing free-market operations.
Socialism: Government owns key industries but permits some private ownership, aiming to reduce inequality.

Capitalist Economies: Driven by competition and profit motives, fostering technological innovation for market advantage.
Communist Economies: Technology development controlled by the government, potentially limiting innovation compared to capitalist systems.

Capitalism: Driven by supply and demand for workers, with wages determined by market conditions.
Communism: Government sets wages and employment conditions, striving for equal job opportunities for all citizens.