Which statement correctly distinguishes an entrepreneur from an employee?

Correct answer: An entrepreneur takes business decisions and risks while an employee performs assigned work

An entrepreneur usually initiates or owns a venture, makes major business decisions, organises resources, and bears the possibility of profit or loss. An employee generally works in an assigned role for agreed compensation, although employees can also make decisions in their duties. Thus the distinction is mainly ownership, responsibility, and business risk—not that every employee has no initiative.