CMA Foundation · Fundamentals of Business Economics and Management · Means of Production
Which of the following is an innovating function of an entrepreneur, as emphasised by Schumpeter?
Introducing a new production method or product is the innovating function Schumpeter attributed to the entrepreneur. He viewed entrepreneurs as agents of change who bring new combinations of resources, products, markets or techniques, whereas routine tasks like paying wages or bookkeeping are not innovation.
- AIntroducing a new production method or productCorrect
- BPaying wages on the due date
- CMaintaining the cash book
- DDepositing surplus cash in a bank
Explanation
Schumpeter saw the entrepreneur as an innovator who introduces new products, methods, markets or sources of supply. Paying wages, bookkeeping and banking surplus cash are routine tasks and not innovation.
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