Question

List down the commercial functions of Entrepreneur and explain them shortly.

Answer 1

Commercial Functions of Entrepreneur:

(1) Production or Manufacturing:

• Under production function, the entrepreneur has to take decisions relating to the selection of factory site, design, and layout, type of products to be manufactured, research and development, product design, etc.

(2) Marketing:

• The entrepreneur has to carry out the following functions pertaining to the marketing aspect namely consumer research, product planning and development, standardization, packaging, pricing, warehousing, distribution, promotion, etc.

(3) Accounting:

• The entrepreneur has to arrange to prepare trading and profit and loss accounts in order to know the profit or loss incurred out of the operation of the business and prepare a balance sheet to know the financial status of the business on a particular day.

(4) Finance:

• In the sphere of the financial function, an entrepreneur has to make decisions like choosing the right type of financing, framing the best dividend policy, acquiring funds, efficiently managing fixed and current assets, maximizing shareholders' wealth, and investing of funds efficiently and effectively.

(5) Human Resource Management:

• The entrepreneur has to estimate the manpower needs of the enterprise and accordingly decide the size of manpower required for various slots of organizational structure.