Which of the following statements about businesses is true?
A) Businesses provide consumers with goods and services and receive payment in the form of money.
B) Businesses frame rules and regulations to maintain the law and order in a country.
C) Businesses determine the kinds of goods and services that a government will use.
D) Businesses do not interact with other players in the economy.
E) Businesses are seldom affected by economic cycles.

Question

Quizplus · Accepted Answer

Businesses provide goods and services to consumers and receive payment in the form of money. This is the fundamental purpose of businesses in a market economy. Option B is incorrect because the framing of rules and regulations is the responsibility of the government, not businesses. Option C is incorrect because businesses do not determine the goods and services that a government will use; this is determined by the government's policies and budgetary decisions. Option D is incorrect because businesses interact with other players in the economy, such as consumers, suppliers, competitors, and regulators. Option E is incorrect because businesses are affected by economic cycles, which can impact their revenues, profits, and operations.

Which of the Following Statements About Businesses Is True