Title: Identify characteristics of free enterprise.
Course: Principles of Business and Marketing (12051-36) > Section: Understanding the Role of Economics in a Global Economy

Identification should include the following concepts:

- Capitalism—An important element of capitalism is the private ownership of economic resources.
- Private enterprise—Individuals invest their money and time to satisfy consumers’ needs and wants.

Individuals make decisions about products and distribution based on the elements of the free enterprise system:

- Freedom to own property
- Freedom to take risks
- Freedom to make a profit—Achievement of monetary gain motivates individuals to engage in business ventures.
- Freedom to compete—Rivalry exists among businesses to sell their goods and services.