O Levels Economics (2281)•2281/13/O/N/20

Explanation
Entrepreneurs primarily take calculated risks to innovate and grow businesses
Steps:
- Define entrepreneur as someone who organizes resources to start and run a business.
- Identify core functions: innovation, organization, and bearing uncertainty.
- Evaluate choices against economic definitions of entrepreneurship.
- Select the option that best captures the essential risk-bearing aspect.
Why B is correct:
- In economics, entrepreneurship is defined by Joseph Schumpeter as the act of taking risks to introduce innovations and create value, making risk-taking the key role.
Why the others are wrong:
- A: Inventors create ideas but don't necessarily commercialize them through business ventures.
- C: Shareholders invest money but do not actively manage or risk personal resources in operations.
- D: Workers perform tasks under direction but lack the initiative and ownership of entrepreneurs.
Final answer: B
Topic: The factors of production
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