CMA Foundation · Fundamentals of Business Economics and Management · Means of Production
An entrepreneur decides what to produce, how much to produce and which technique to use, after estimating market demand. Which function does this represent?
This represents the decision-making function of the entrepreneur. Deciding what to produce, in what quantity and by which technique, based on estimated demand, is a core entrepreneurial task, whereas leasing land, supplying labour and lending money are roles of other factor owners.
- ADecision-makingCorrect
- BSupplying land on lease
- CProviding labour services
- DLending money at interest
Explanation
Choosing the product, quantity and technique is the initiating and decision-making function of the entrepreneur. The other options describe roles of other factor owners such as landlords, workers and lenders.
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