In which situation is a person more accurately called an entrepreneur rather than only a businessperson?
Answer and explanation
Correct answer: He identifies a new problem and creates a new solution
An entrepreneur identifies an opportunity or problem and develops a useful solution, often combining innovation with planned risk-taking. Simply repeating an old selling method is ordinary business activity, while investing blindly is not entrepreneurial judgement. Completely avoiding risk also prevents many new ventures from being tested. Therefore, identifying a problem and creating a solution best demonstrates entrepreneurship.
Frequently asked questions
What is the correct answer to this question?
He identifies a new problem and creates a new solution
Why is this the correct answer?
An entrepreneur identifies an opportunity or problem and develops a useful solution, often combining innovation with planned risk-taking. Simply repeating an old selling method is ordinary business activity, while investing blindly is not entrepreneurial judgement. Completely avoiding risk also prevents many new ventures from being tested. Therefore, identifying a problem and creating a solution best demonstrates entrepreneurship.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
