An entrepreneur
A)always makes a profit
B)generally avoids risky situations
C)claims the residual (i.e., whatever is left over)after other resource suppliers are compensated
D)is a parasite that benefits by not paying other resources for their services
E)is the manager who runs an enterprise and keeps the customers happy

Question

Quizplus · Accepted Answer

An entrepreneur is a person who assumes the risk of starting and managing a new business venture to make a profit. They are responsible for organizing and managing resources such as labor, capital, and land to produce goods and services that satisfy the needs of consumers. The residual claimant concept means that the entrepreneur is entitled to the profits that remain after all the factors of production have been paid their respective salaries, wages, rent, and interest. This indicates that option C is the correct choice.

An Entrepreneur