free market system - prices of goods and services are determined by supply and demand

socialism - the gov has more of a say and control about the spread of wealth

seven key environments of business

• the economic environment
• the technological environment
• the cultural environment
• the gov environment
• the legal environment
• the natural internal environment

businesses are subject to economic forces, such as the overall health of the economy, interest rates, prices, wages, and government policies related to the economy

gov activity increase and constraint businesses

legal environment growth of laws and regs, expansion of legal duties to protect rights of stake holders

natural environment extensive growth in 21st century which have resulted in environmental costs

internal environment 4 groups: employees, managers board of directors, and owners