Free enterprise is a system of economic activity in which private ownership and individual initiative are the primary drivers of production, distribution, and exchange of goods and services. This system is characterized by the following principles: 1. Private Ownership:– Property rights are privately owned, meaning that individuals have the right to own and control their […]

The balance of payments account is a statement that summarizes all foreign exchange transactions made by a country during a particular period of time. It includes all payments and receipts from foreign trade, investment, and other sources. The balance of payments account helps maintain the stability of a country’s currency. Components of the Balance of […]

Paid-up capital is the portion of the authorized share capital that has been paid for by shareholders at the time of subscription or purchase. It is also referred to as the contributed capital and represents the amount paid in cash or other assets for the shares. Formula: Paid-up capital = Issued shares × par value […]

Impperfect Competition Impperfect competition is a market structure in which there are a large number of buyers and sellers, but each firm is a small player in the overall market. This means that firms can influence the market price, but they are not able to control it completely. Characteristics of Impperfect Competition: Many buyers and […]