What is the role of an entrepreneur?
A) to always make a profit
B) to generally avoid risky situations
C) to claim the residual (i.e., whatever is left over) after other resource suppliers are compensated
D) to be a parasite that benefits by NOT paying other resources for their services

Question

What is the role of an entrepreneur?  
A) to always make a profit 
B) to generally avoid risky situations 
C) to claim the residual (i.e., whatever is left over) after other resource suppliers are compensated 
D) to be a parasite that benefits by NOT paying other resources for their services

Quizplus · Accepted Answer

The role of an entrepreneur is to claim the residual (i.e., whatever is left over) after other resource suppliers are compensated. This means that entrepreneurs use their resources and skills to create value and generate a profit, but they do so by compensating other resources (such as labor, capital, and materials) for their contributions. The residual is the profit that remains after all other costs have been paid, and it is the reward for the entrepreneur's effort, risk-taking, and innovation. Therefore, option C is the best choice.

Answers A, B, and D are incorrect. Although making a profit is often a goal of entrepreneurship, it is not the only one, as entrepreneurs may also seek to create social or environmental value. Avoiding risky situations is not always possible or desirable, as some degree of risk is inherent in entrepreneurial activities. Finally, being a parasite that benefits by NOT paying other resources for their services is not a sustainable or ethical approach to entrepreneurship, as it would lead to conflicts and negative impacts.

What Is the Role of an Entrepreneur