A final form of business management is that in which the state is the enterpriser. Many forms of business enterprise which were formerly the concern of individual citizens have now been taken over wholly or partly by the state and there are even persons who advocate the extension of government enterprise to include all kinds of business. If the desire of this latter class of persons were carried out, there would be no longer private enterprisers. The state would be the sole enterpriser. As a general proposition, private enterprise can produce more economically than can the government, and, therefore, private enterprise should be encouraged as much as possible. On the other hand, there are many kinds of enterprise in which cheapness of production is of much less importance than the quality of the product or the service. The supplying of drinking water in a city and the handling of the mails are illustrations. In such businesses government management is preferable to private management.

Questions

1. What other terms have been used synonymously with enterpriser?

2. What are the functions of the enterpriser?

3. Classify the forms of business management.

4. Give an example of a single enterpriser.

5. Discuss the advantages and disadvantages of this form of management.

6. Explain the partnership form of management.

7. Discuss the advantages and disadvantages of this form.

8. Explain the corporation form.

9. Discuss the advantages and disadvantages of the corporation as compared with other forms of management.

10. Give examples of cooperative management.

11. Discuss the advantages and disadvantages of cooperation as a form of business management.

12. As a general principle, under what circumstances is government management of industry to be preferred?

Supplementary Reading

Ely, Outlines, Chap. ix.

Marshall, Principles, Book IV., Chaps. x.-xii.

Seager, Principles, Chap. x.

Seligman, Principles, Chap. xxii.

Taussig, Principles, Chap. vi.