2. The Evolution of Business
Chapter Two
The Evolution of Business
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McGraw-Hill/Irwin
Introduction to Business

3. Learning Objectives
Understand how property rights work to control the way productive resources are used in society.
Define the system of feudalism and understand how combining land and labor speeds the accumulation of capital.
Appreciate the functions of money in business and how the development of money promoted the rapid development of capital and enterprise.

4. Learning Objectives
Describe the system of mercantilism, and appreciate the role played by merchants and bankers in speeding development in global trade.
Explain the causes of the industrial revolution and the development of capitalism, unionization, and the class system.
Explain how and why the form of business organization used to manage business commerce has changed over time.

5. Feudalism: Land, Labor, and Property Rights
The Emergence of the Hierarchy
Hierarchy and Property Rights
Feudalism

6. The Emergence of the Hierarchy
Hierarchy of authority

7. Hierarchy and Property Rights
Aristocracy

8. Money, Capital, and Commerce
From Barter to Money
From Money to Capital

9. From Barter to Money
Double coincidence of wants

10. From Money to Capital
Interest rate
Risk

11. Mercantilism: Trade and Enterprise
Merchants

12. The Growth of Enterprise
Bankers
Craftspeople
Craft guilds

13. The Industrial Revolution
A Revolution in Farming and Manufacturing
Why Did the Industrial Revolution Occur So Late?
Capitalism, Unionization, and the Modern Class System
The Industrial Revolution Continues

14. Capitalism, Unionization, and the Modern Class System
Capitalists
Proletariat
Trade union
Class system

15. The Changing Forms of Business Organization
Early Forms of Business Organization
The Joint-Stock Company
The Limited Liability Company
The Partnership and Sole Proprietorship

16. The Joint-Stock Company
Unlimited liability

17. The Limited Liability Company

18. The Partnership and Sole Proprietorship