Circular Flow of Income and Business Organizations Quiz

A cyclical process where resources flow from businesses to households and money flows from households to businesses.

A linear process where resources flow from businesses to households and money flows from households to businesses.

A cyclical process where resources flow from households to businesses and money flows from businesses to households. (correct)

A linear process where money flows from households to businesses and back again.

It is a legal entity separate from its owners. (correct)

It is a non-profit organization.

It is solely owned and managed by an individual.

It does not engage in economic activities.

To generate profit for its owners. (correct)

To promote social welfare.

To provide goods and services to consumers.

To fulfill the needs of the government.