Which statement best explains the difference between an entrepreneur and an employee?
Answer and explanation
Correct answer: Entrepreneur creates opportunities and takes risk, while employee performs assigned work
An entrepreneur identifies or creates an opportunity, organises resources, makes key business decisions, and bears the possibility of profit or loss. An employee generally performs defined duties within an organisation in return for wages or salary, although employees also have responsibilities and may make decisions within their role. Thus option B gives the best general distinction without claiming that employees lack accountability.
Frequently asked questions
What is the correct answer to this question?
Entrepreneur creates opportunities and takes risk, while employee performs assigned work
Why is this the correct answer?
An entrepreneur identifies or creates an opportunity, organises resources, makes key business decisions, and bears the possibility of profit or loss. An employee generally performs defined duties within an organisation in return for wages or salary, although employees also have responsibilities and may make decisions within their role. Thus option B gives the best general distinction without claiming that employees lack accountability.
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.
