CSEET · Economic and Business Environment · Entrepreneurship Scenario
Which statement correctly distinguishes an entrepreneur from a manager?
An entrepreneur initiates a venture, innovates and bears its risk, earning profit as the reward. A manager runs an existing enterprise on behalf of owners, usually for a salary, and does not carry the ultimate financial risk. The other statements wrongly reverse these roles.
- AAn entrepreneur initiates and owns the risk of a venture, whereas a manager directs resources of an existing enterprise for a salaryCorrect
- BA manager always bears the ultimate financial risk, while an entrepreneur never does
- CAn entrepreneur only works in government enterprises, while a manager works only in private firms
- DAn entrepreneur is concerned only with daily routine, while a manager is concerned only with innovation
Explanation
The entrepreneur starts the venture, innovates and bears risk, earning profit. The manager runs an existing enterprise, is usually paid a salary and is not the ultimate risk bearer. The other options reverse or invent distinctions.
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