Development of Capitalism Flashcards
What is capitalism?
An economic system where trade, industries, and means of production are largely or entirely privately owned and operated for profit.
How did capitalism contribute to the Industrial Revolution?
It provided the financial structure for investment in new industries, technology, and infrastructure.
What role did entrepreneurs play in the development of capitalism?
Entrepreneurs invested in new businesses, took risks, and drove innovation, which fueled economic growth.
What is a dividend?
A portion of a company’s profits paid to shareholders.
What is a shareholder?
An individual or institution that owns shares in a company and is entitled to a portion of the profits.
What is the role of banks in capitalism?
Banks provide capital for investment, loans for businesses, and facilitate trade and commerce.
What are shares?
Units of ownership in a company, representing a claim on part of the company’s assets and profits.
How did joint-stock companies contribute to capitalism?
They allowed individuals to pool resources and share risks, encouraging large-scale business ventures.
What is laissez-faire economics?
An economic philosophy of free-market capitalism that opposes government intervention.
How did the stock market emerge in the capitalist system?
The stock market developed as a place where shares of companies could be bought and sold, providing a platform for investment.
