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Choose which of the following describes a free enterprise system?

A. There are no legal restrictions on freedom of enterprise

B. Individuals are free to own and control the factors of production

C. Government owns and controls the factors of production

D. Businesses cannot make a profit

User Lesia
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2 Answers

4 votes

Answer:

B. Individuals are free to own and control the factors of production

Step-by-step explanation:

User Ohad Sharet
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Out of all given choices, "Individuals are free to own and control the factors of production" describes a free enterprise system.

Answer: Option B

Step-by-step explanation:

Free enterprise is an alternate name for capitalism i.e., a market where the prices of products and services made determined by market forces. In this market companies and the market forces are not controlled by the government.

Here, the main aim is profit and participants are free to start a business as they can also determine the prices, demand and supply in the market. Although this is not exactly capitalism, this is more of laissez faire' capitalism.

User MartyMacGyver
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