Final answer:
The private sector refers to privately owned business firms that exist to make a profit, nonprofit organizations, and individual households.
Step-by-step explanation:
The statement is True. The private sector refers to privately owned business firms that exist to make a profit, nonprofit organizations, and individual households. Private enterprise is characterized by businesses that are owned and managed by independent companies or private individuals, rather than by the state. These businesses contribute to the economy by providing goods and services, creating job opportunities, and driving innovation and competition.