Which of the following cannot be a characteristic of an entrepreneur?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Risk averse
Risk averse cannot be a characteristic of an entrepreneur as entrepreneur is risk taker.
Risk-taking: As the entrepreneur contracts for an assured supply of the various inputs for his project, he incurs the risk of paying them off whether or not the venture succeeds. Thus, land owner gets the contracted rent, capital providers gets the contracted interest, and the workforce gets the contracted wages and salaries. However, there is no assurance of profit to the entrepreneur.
OTHER OPTIONS
- Desire to Succeed- Entrepreneurs are driven and goal-oriented.
- Innovative- They think creatively and bring new ideas to market.
- Leader- They guide teams and influence others.