Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Planning

Question:

Which one of the following does NOT denote the correct meaning of "Manufacturing" as an economic activity?

Options:

It relates to production of merchandise for use or sale using labour and machines, tools, chemical and biological processing, or formulation.

It applies to industrial production, in which raw materials are transformed into finished goods on a large scale.

In a mixed market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit.

In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy.

Correct Answer:

In a mixed market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit.

Explanation:

Manufacturing: it means production of merchandise for use or sale using labour and machines, tools, chemical and biological processing, or formulation. It may also refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircrafts, house hold appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users – the "CONSUMERS". Manufacturing takes turns under all types of economic system. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation.