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Functions of the entrepreneur are:
- a)Risk bearing
- b)Initiating a business enterprise and resource co-ordinating
- c)Introducing new innovations
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Functions of the entrepreneur are:a)Risk bearingb)Initiating a busines...
Functions of an Entrepreneur
Decision Making:
The primary task of an entrepreneur is to decide the policy of production. An entrepreneur is to determine what to produce, how much to produce, how to produce, where to produce, how to sell and’ so forth. Moreover, he is to decide the scale of production and the proportion in which he combines the different factors he employs.
Management Control:
Earlier writers used to consider the management control one of the chief functions of the entrepreneur. Management and control of the business are conducted by the entrepreneur himself. So, the latter must possess a high degree of management ability to select the right type of persons to work with him. But, the importance of this function has declined, as business nowadays is managed more and more by paid managers.
Division of Income:
The next major function of the entrepreneur is to make necessary arrangement for the division of total income among the different factors of production employed by him. Even if there is a loss in the business, he is to pay rent, interest, wages and other contractual incomes out of the realised sale proceeds.
Risk-Taking and Uncertainty-Bearing:
Risk-taking is perhaps the most important function of an entrepreneur. Modern production is very risky as an entrepreneur is required to produce goods or services in anticipation of their future demand.
Innovation:
Another distinguishing function of the entrepreneur, as emphasised by Schumpeter, is to make frequent inventions — invention of new products, new techniques and discovering new markets — to improve his competitive position, and to increase earnings.
This question is part of UPSC exam. View all CA Foundation courses
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Functions of the entrepreneur are:a)Risk bearingb)Initiating a busines...
Functions of the Entrepreneur
There are various functions performed by an entrepreneur in the business world. Some of the significant functions are as follows:
Risk Bearing
Entrepreneurs are always ready to take risks in their business ventures. They invest their money in new projects or ideas, which may involve a high degree of uncertainty. They bear the risk of losing their investment if the project does not yield the desired results.
Initiating a Business Enterprise and Resource Coordinating
Entrepreneurs are responsible for initiating and establishing a new business enterprise. They identify the market opportunities, assess the potential demand, and create a business plan to tap into these opportunities. They also coordinate the resources required for the business, such as capital, human resources, and physical resources.
Introducing New Innovations
Entrepreneurs are known for their innovative ideas and solutions. They are always looking for ways to improve existing products or services or to introduce new ones. They are constantly exploring new technologies, markets, and business models to stay ahead of the competition.
Conclusion
In conclusion, the functions of an entrepreneur are diverse and critical to the success of any business venture. They involve taking risks, initiating and coordinating resources, and introducing new innovations. Entrepreneurs play a vital role in driving economic growth and development, and their contributions cannot be overstated.
There are various functions performed by an entrepreneur in the business world. Some of the significant functions are as follows:
Risk Bearing
Entrepreneurs are always ready to take risks in their business ventures. They invest their money in new projects or ideas, which may involve a high degree of uncertainty. They bear the risk of losing their investment if the project does not yield the desired results.
Initiating a Business Enterprise and Resource Coordinating
Entrepreneurs are responsible for initiating and establishing a new business enterprise. They identify the market opportunities, assess the potential demand, and create a business plan to tap into these opportunities. They also coordinate the resources required for the business, such as capital, human resources, and physical resources.
Introducing New Innovations
Entrepreneurs are known for their innovative ideas and solutions. They are always looking for ways to improve existing products or services or to introduce new ones. They are constantly exploring new technologies, markets, and business models to stay ahead of the competition.
Conclusion
In conclusion, the functions of an entrepreneur are diverse and critical to the success of any business venture. They involve taking risks, initiating and coordinating resources, and introducing new innovations. Entrepreneurs play a vital role in driving economic growth and development, and their contributions cannot be overstated.
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Functions of the entrepreneur are:a)Risk bearingb)Initiating a business enterprise and resource co-ordinatingc)Introducing new innovationsd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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Functions of the entrepreneur are:a)Risk bearingb)Initiating a business enterprise and resource co-ordinatingc)Introducing new innovationsd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Functions of the entrepreneur are:a)Risk bearingb)Initiating a business enterprise and resource co-ordinatingc)Introducing new innovationsd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Functions of the entrepreneur are:a)Risk bearingb)Initiating a business enterprise and resource co-ordinatingc)Introducing new innovationsd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Functions of the entrepreneur are:a)Risk bearingb)Initiating a business enterprise and resource co-ordinatingc)Introducing new innovationsd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Functions of the entrepreneur are:a)Risk bearingb)Initiating a business enterprise and resource co-ordinatingc)Introducing new innovationsd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Functions of the entrepreneur are:a)Risk bearingb)Initiating a business enterprise and resource co-ordinatingc)Introducing new innovationsd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
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