Target Exam

CUET

Subject

Business Studies

Chapter

Entrepreneurship Development

Question:

Which of the following cannot be a characteristic of an entrepreneur?

Options:

Desire to Succeed

Risk averse

Innovative

Leader

Correct Answer:

Risk averse

Explanation:

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.