What is the economic system that recognizes private businesses?

The economic system that recognizes private businesses is capitalism. In a capitalist system, individuals and companies have the freedom to own and operate their businesses, make profits, and compete in the marketplace. This system is characterized by private property rights, voluntary exchange, and the pursuit of profit, which drives innovation and economic growth.

Conversely, socialism involves government ownership or regulation of the means of production, aiming for equitable distribution of wealth and resources, while communism advocates for a classless society where all property is publicly owned. Feudalism, on the other hand, is a historical system where land was owned by nobles and worked by serfs or peasants, with a strict social hierarchy. Capitalism, therefore, is distinct for emphasizing individual entrepreneurship and private ownership as key components of its economic framework.