What economic system allows people to own businesses and retain the profits?

The correct answer is capitalism, which is an economic system characterized by private ownership of businesses and the means of production. In capitalism, individuals and companies can operate businesses with minimal government intervention, allowing them to compete freely in the marketplace. This system encourages entrepreneurship and innovation by enabling owners to keep the profits from their enterprises. The motivation to gain profits drives people to improve their products or services, leading to economic growth and increased consumer choices.

In contrast, socialism involves government or collective ownership of resources and means of production, aiming to distribute wealth more evenly across society. In a socialist system, profits are often distributed among the community rather than retained by individual owners.

Communism is a more extreme form of socialism where all property is publicly owned, and each person works and is paid according to their abilities and needs, with no concept of profit for individuals.

Feudalism is a historical economic system characterized by a rigid social structure where land was owned by lords who allowed vassals to work it in exchange for protection.

Overall, capitalism's allowance for individual ownership and profit retention distinguishes it as the correct choice for this question.