A manager who decides to commit more money and employees to the development of a potentially lucrative new product is performing the managerial roles of both entrepreneur and resource allocator.

Question

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As an entrepreneur, the manager is seeking to innovate and improve the organization by introducing a new product. By allocating more money and employees to its development, the manager is also performing the role of a resource allocator, deciding where organizational resources are best applied.

A Manager Who Decides to Commit More Money and Employees