What is the main difference between an entrepreneur and an employee?
Answer and explanation
Correct answer: An entrepreneur can start a business while an employee performs assigned work
An entrepreneur identifies an opportunity, organises resources, makes key business decisions, and generally bears the uncertainty and risk of the venture. An employee usually works under an employment agreement, performs assigned responsibilities, and receives wages or salary, though employees may also make decisions within their roles. Ownership is not automatic for an employee, so option A is the best distinction here.
Frequently asked questions
What is the correct answer to this question?
An entrepreneur can start a business while an employee performs assigned work
Why is this the correct answer?
An entrepreneur identifies an opportunity, organises resources, makes key business decisions, and generally bears the uncertainty and risk of the venture. An employee usually works under an employment agreement, performs assigned responsibilities, and receives wages or salary, though employees may also make decisions within their roles. Ownership is not automatic for an employee, so option A is the best distinction here.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Distinction between Business, Profession and Employment.
