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Capital was necessary to build factories, purchase machines, secure raw materials, and pay workers; this all occurred before any goods were sold. Consequently the capitalist, who risked money by investing in a business, controlled the entire process of production. This economic system, based on private capital, was known as capitalism. Capital provides the means of production and the managerial skills; labor provides the work; government provides law and order and protects the people against economic abuses. The individual entrepreneur and the partnership exist chiefly in farming, the professions, small retail shops, and services of today...
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