CSEET · Economic and Business Environment · Entrepreneurship Scenario
In the study of entrepreneurship, which statement best describes an entrepreneur?
An entrepreneur is a person who spots an opportunity, organises the needed resources, bears the risk and starts a new venture. A salaried manager or a lender does not do this, because they neither take the venture's uncertainty nor launch the enterprise.
- AA person who organises resources, bears the risk and starts a new venture to exploit an opportunityCorrect
- BA salaried manager who carries out instructions given by the owners
- CA person who only lends money to businesses in return for interest
- DA government officer who regulates business licences
Explanation
An entrepreneur identifies an opportunity, brings together land, labour and capital, and bears the uncertainty of a new venture. A salaried manager works for pay under the owners' direction and does not bear the venture's risk. A lender earns interest and does not organise the enterprise.
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