DECA Business Management and Administration Exam Practice – Complete Prep Guide

In a communist command economy, the government is responsible for providing capital for business investment. This economic system is characterized by centralized planning and state ownership of the means of production. In such a system, the government allocates resources, including financial capital, to various sectors and businesses according to its economic goals and plans. This approach contrasts sharply with market economies, where private investors fund businesses based on market demand and potential profitability. The absence of private investment in a command economy underscores the government's dominant role in economic decision-making and resource distribution.