alleryStart learning →Which description fits an entrepreneur?
AA worker who applies specialist knowledge inside a large firm
BAn official who plans output targets for a whole industry
CA lender who supplies money to a business at a fixed rate
DA person who combines the other inputs to produce output
Answer & Solution
Correct answer: D. A person who combines the other inputs to produce output
1. Entrepreneurs combine the inputs of natural resources, labor and capital to produce goods or services.
2. They do so with the intention of making a profit or of accomplishing a not-for-profit goal.
3. They also make the decisions that set the course for the business and create its products and processes.
4. A salaried specialist supplies labor and knowledge, and a lender supplies money, so neither combines the inputs.
5. An official setting output targets for an industry belongs to a planned economy, not to entrepreneurship.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 1 "Understanding Economic Systems and Business", section 1.1 The Nature of Business_
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