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Question
'One of the most important functions of an entrepreneur is to bear the risk associated with the business'. Explain the statement.
Answer in Brief
Solution
Important function of an entrepreneur is bearing the risk associated with the business. The reasons are as under:
- Entrepreneurs take calculated risks by investing their time, money, and resources to launch a new enterprise.
- Entrepreneurs make commercial judgements in imperfect conditions. The results are usually unpredictable.
- Entrepreneurs create strategies and plans to manage and mitigate recognised risks. This may involve implementing risk mitigation methods and developing contingency plans to address potential risks.
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Functions of an Entrepreneur
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