CSEET · Economic and Business Environment · Entrepreneurship Scenario
Meera starts a venture, hires staff, arranges finance and accepts that she may lose her investment if the product fails. Which entrepreneurial function is best shown by her willingness to accept the possibility of loss?
Her willingness to accept a possible loss if the product fails shows the risk-bearing function. Bearing uncertainty of the venture is a core entrepreneurial role, whereas delegation and record-keeping are routine managerial activities and do not capture the acceptance of loss.
- ARisk-bearingCorrect
- BRecord-keeping
- CDelegation of authority
- DPrice regulation
Explanation
Accepting the chance of loss from an uncertain venture is the risk-bearing function of an entrepreneur. Delegation and record-keeping are managerial or administrative tasks. Price regulation is done by authorities or the market, not as an entrepreneurial function here.
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