CSEET · Economic and Business Environment · Entrepreneurship Scenario
In economic and business literature, which of the following best describes the core role of an entrepreneur?
An entrepreneur identifies a business opportunity, organises the needed resources to start a new venture, and bears the risk and uncertainty involved. This differs from routine management, money lending or supplying materials, which do not involve creating and risking a new enterprise.
- AIdentifying an opportunity and organising resources to create a new venture while bearing its riskCorrect
- BManaging routine office work under instructions from the owner
- CLending money to businesses in return for fixed interest
- DSupplying raw material to manufacturers at regular intervals
Explanation
An entrepreneur spots an opportunity, combines land, labour and capital, and bears the uncertainty of the venture. Routine supervision is a managerial role, lending is financing, and supplying material is a vendor function.
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