Question 1 · 1 mark · Difficulty 1/3
A person who takes the risk of starting and running a new business is called an:
- Entrepreneur
- Employee
- Administrator
- Auditor
Show answer & explanation
✓ Answer: A — Entrepreneur
Award 1 mark. The entrepreneur brings the idea, organises the other factors of production and carries the financial risk if the business fails, which is what the profit rewards. An employee is paid to work in the business, and an administrator or auditor performs a defined role within or for it rather than owning the risk.