Chapter 4 Review: Private Enterprise

Businesses who sell products to other businesses are part of:

• B2C market

• B2B market

• an industry

• government market

Businesses that use raw materials to create goods are called:

• extractors

• tertiary

• wholesalers

• manufacturers

Businesses that extract natural resources for use in the creation of goods are called:

• manufacturers

• tertiary

• wholesalers

• extractors

Which of the following is not a sector?

• secondary

• primary

• intermediate

• tertiary

TRUE or FALSE:

Public enterprise business is owned fully or in part by the government and includes tax-funded (military, police, public education) which exist to serve a public purpose and encourage economic development.

• True

• False

Explain the role of wholesalers in a private enterprise system.

• free enterprise system that purchases goods from a manufacturer to resell them to a retailer

• free enterprise system that purchases goods from other wholesalers to resell them to a retailer

• free enterprise system that purchases goods from a manufacturer to resell them directly to the customer

• free enterprise system that sales goods from a manufacturer to resell them to a retailer

What is the distribution channel?​ ​ ​ (a)  

• Producer ⟶ Wholesaler ⟶ Retailer ⟶ Consumer
• Consumer ⟶ Retailer ⟶ Wholesaler ⟶ Producer
• Consumer ⟶ Wholesaler ⟶ Retailer ⟶ Producer
• Producer ⟶ Retailer ⟶ Wholesaler ⟶ Consumer

TRUE or FALSE:

Public enterprises are business or industry managed by independent companies or private individuals. These type of businesses are independently owned by a citizen or citizens, investments are determined by private decision while prices, production, and distribution of goods determined by competition.

• True

• False

What factors affect a business?

• Industry

• Profits

• Revenue

• Expenses

• Capitalism

TRUE or FALSE:

Secondary sectors utilize materials produced from the primary sector to create goods and include manufacturers, intermediaries, wholesalers, and retailers.

• TRUE

• FALSE