Start learning →

Which single function of an entrepreneur cannot be delegated to paid managers and is therefore regarded as the most important?

ARoutine record-keeping
BHiring of factor inputs
CDay-to-day supervision
DRisk and uncertainty bearing
Answer & Solution
Correct answer: D. Risk and uncertainty bearing
1. Nearly all entrepreneurial functions can be entrusted to paid managers, but risk bearing cannot be delegated to anyone. 2. The ultimate responsibility for the firm's survival lies with the entrepreneur who bears uncertainty. 3. So risk and uncertainty bearing is the function that stays with the entrepreneur. 4. Record-keeping, supervision and hiring inputs are routine or organisational tasks that a manager can perform. _Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 3 Unit I "Theory of Production", p.8_
Practise this question with Quill — CA Foundation →

Keep practising Unit 3: Production, Cost & Perfect Competition

Browse all Unit 3: Production, Cost & Perfect Competition questions for CA Foundation, or explore more Economics topics.

Start a Unit 3: Production, Cost & Perfect Competition lesson →