What Is the Difference Between a Public Franchise and a Public

question 275

Multiple Choice

What is the difference between a public franchise and a public enterprise?

• A)A public franchise grants a firm the right to be the sole legal provider of a good or service. A public enterprise refers to a service that is provided directly to consumers through the government.
• B)A public enterprise grants a firm the right to be the sole legal provider of a good or service. A public franchise refers to a service that is provided directly to consumers through the government.
• C)A public enterprise is owned by the public through its holdings of shares of stock in the enterprise. A public franchise is a firm owned by the government.
• D)Both refer to a service provided directly to consumers through the government, but "public franchise" is a term more commonly used in the United States while "public enterprise" is more commonly used in European countries.

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Definitions:

Creative Destruction

A concept in economics where innovation leads to the demise of older technologies or industries, driving economic growth.

Medium of Exchange

An item that is widely accepted in transactions for goods and services because it simplifies trade and eliminates the need for a coincidental wants barter system.

Capital Good

Long-term assets used in the production of goods and services, such as machinery, buildings, and equipment.

Store of Value

Store of value is a function of money that allows it to retain purchasing power over time, enabling people to save it and use it in the future.