Question

Write short notes on:
Functions of an entrepreneur

Answer 1

Functions of an Entrepreneur :-

1. Decision Making: The primary task of an entrepreneur is to decide the policy of production. He is to decide the scale of production and the proportion in which he combines the different factors he employs.
2. Management Control: Management and control of the business are conducted by the entrepreneur himself.
3. Division of Income: He has to take decision regarding distribution of income among different factors of production.
4. Risk-Taking: To succeed in business, he has to face various kinds of risks.
5. Innovation: To increase the income, he has to make frequent innovation.