Which of the following is true of entrepreneurs?a. They take a personal stake in the success or failure of the business.b. They hire professional managers to run their businesses.c. They assume the risk of the venture but are not actively involved in operating it.d. They run someone else's business.

Answer :

Answer:

a. They take a personal stake in the success or failure of the business

Explanation:

Entrepreneur refers to an individual who sets up his own business and holds full control relating to it's organization and management, and at the same time assumes higher risk as a consequence.

The consideration for the entrepreneur for assuming such higher risk is in the form of profits which he earns. Profit refers to excess of revenues over costs.

A major characteristic of entrepreneurship being, the entrepreneur has his personal stake in such business which means, whatever the business earns or incurs, belongs to the entrepreneur and directly affects him.

Also in case of a business failure, the entrepreneur has to make up for losses personally.

Other Questions