WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
SECOND INDUSTRIAL REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A business taking a risk to make a profit.
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A program administered by the Government.
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A business that gives out services for free.
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A business adventure or undertaking.
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Detailed explanation-1: -Define Free Enterprise: A business taking a risk to make a profit. Capital is: Money available to invest. The following is included in a business plan.
Detailed explanation-2: -What Is Free Enterprise? Free enterprise, or the free market, refers to an economy where the market determines prices, products, and services rather than the government. Businesses and services are free of government control.
Detailed explanation-3: -Profit can be seen as the monetary reward to shareholders and owners of a business. In a capitalist economy, profit plays an important role in creating incentives for business and entrepreneurs. For an incumbent firm, the reward of higher profit will encourage them to try and cut costs and develop new products.
Detailed explanation-4: -There are four factors underlying the free enterprise system. Profit, risk, competition, and productivity work together to keep things running in an optimal way.
Detailed explanation-5: -Free enterprise is an economic system where the government plays a minimized role in the business world. It emphasizes few restrictions on business activities, but also offers few protections. The primary motivator of the free enterprise system is profit. Other motivators include risk, competition, and productivity.