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Question
Mention any three decision making functions of an entrepreneur.
Solution
An entrepreneur is crucial to the decision-making process within a business.
The decision-making functions of an entrepreneur involve:
- Risk assessment and management: Every firm has some level of risk, including financial, operational, regulatory, and market hazards. The entrepreneur is responsible for evaluating these risks and choosing risk-reduction tactics.
- Financial management: It is the responsibility of entrepreneurs to determine the financial needs of their business funding sources, financial reporting, forecasting, and budgeting. They also decide what investments a company should prioritize and how much to control costs.
- Resource allocation: An entrepreneur's responsibility is to distribute resources among the several business operations in order to guarantee the effective and efficient use of resources in order to achieve the highest possible output.
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