Which statement correctly differentiates enterprise from employment?
Answer and explanation
Correct answer: In enterprise a person creates opportunities, in employment a person performs assigned work
An entrepreneur generally identifies an opportunity, organises resources, makes decisions, and bears the possibility of profit or loss. An employee normally performs assigned duties for an organisation in return for wages or salary. Employment also involves responsibility and income, so the other statements are false. The distinction is about role, control, and risk-bearing.
Frequently asked questions
What is the correct answer to this question?
In enterprise a person creates opportunities, in employment a person performs assigned work
Why is this the correct answer?
An entrepreneur generally identifies an opportunity, organises resources, makes decisions, and bears the possibility of profit or loss. An employee normally performs assigned duties for an organisation in return for wages or salary. Employment also involves responsibility and income, so the other statements are false. The distinction is about role, control, and risk-bearing.
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.
