What is the main difference between an entrepreneur and an employee?
Answer and explanation
Correct answer: An entrepreneur creates and manages work while an employee performs assigned work
An entrepreneur identifies an opportunity, organizes resources, makes key decisions and bears business risk, while an employee generally performs duties for an organization in return for wages or salary. The roles can overlap in some situations, but option A states the basic distinction intended here. The other options are clearly incorrect generalizations.
Frequently asked questions
What is the correct answer to this question?
An entrepreneur creates and manages work while an employee performs assigned work
Why is this the correct answer?
An entrepreneur identifies an opportunity, organizes resources, makes key decisions and bears business risk, while an employee generally performs duties for an organization in return for wages or salary. The roles can overlap in some situations, but option A states the basic distinction intended here. The other options are clearly incorrect generalizations.
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.
