CE 12 Business

The picture shows how financial institutions act as intermediaries between savers and borrowers by -

• Discouraging saving and investing

• Receiving deposits and making loans

• Spending money that is deposited

• Charging interest on savings

The buying and selling of goods and services by all nations in a worldwide market is called -

• globalization

• NAFTA

• Interdependence

• Megalopolis

Which type of business organization can act as one legal entity regardless of its number of owners?

• Entreneurship

• Proprietorship

• Corporation

• Partnership

True or False: Free enterprise means that markets are allowed to operate without undue interference from the government. Also, prices are determined by supply and demand.

• True

• False

Which description about entrepreneurs is INCORRECT?

• They take a risk to produce and sell goods and services in search of profit

• They don't foster technological progress and economic growth

• They can establish a business according to any of the three types of organizational structures (proprietorship, partnership, corporation)

• They create new jobs

Which action best completes the graphic?

• Sell real estate

• Coin money

• Sell home insurance

• Make loans

Which of the following is a characteristic of a free market economy?

• Government control over resources

• Private ownership of resources

• Central planning of production

• Fixed pricing by the government

What is the primary goal of a business in a capitalist economy?

• To provide public services

• To maximize profits

• To ensure equal distribution of wealth

• To control market prices

Which economic system is characterized by collective ownership of resources?

• Capitalism

• Socialism

• Feudalism

• Mercantilism

In a mixed economy, which sector is responsible for providing public goods?

• Private sector

• Public sector

• Informal sector

• Foreign sector