Having a high fixed salary is what motivates entrepreneurs to make prudent decisions is dealing with business risk.

Question

Quizplus · Accepted Answer

Having a high fixed salary may actually decrease an entrepreneur's motivation to take risks and make prudent decisions, as they may have less personal stake in the success or failure of the business. Research shows that performance-based incentives and ownership stakes are more effective motivators for entrepreneurs.

Having a High Fixed Salary Is What Motivates Entrepreneurs to Make