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CSEET · Economic and Business Environment · Entrepreneurship Scenario

Which of the following distinguishes an entrepreneur from a manager in the conventional sense?

The entrepreneur initiates the venture and bears its risk, earning profit as a reward, while a manager is typically a salaried employee who runs operations to achieve objectives already set. The other statements wrongly reverse the reward pattern or assert untrue differences.

  1. AThe entrepreneur works only for a fixed salary, whereas the manager receives profit
  2. BThe entrepreneur bears the risk and initiates the venture, whereas the manager is a salaried person who runs operations within the set objectivesCorrect
  3. CThe entrepreneur never needs innovation, whereas the manager must always innovate
  4. DThe entrepreneur is always employed by the government, whereas the manager is private

Explanation

The entrepreneur initiates the enterprise and bears its risk, with profit as the reward. The manager is generally a salaried employee who implements plans and runs operations to achieve set objectives. The first option reverses the reward patterns, and the other options are not true distinctions.

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