The task of organising, coordinating and risk-taking during production is called:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Entrepreneurship
Organising production, coordinating the other factors and bearing its risk is entrepreneurship. Its reward is profit.
NCERT (2026-27): Glossary: “Entrepreneurship – The task of organising, coordinating and risk-taking during production.” “2.2 Circular Flow of Income and Methods of Calculating National Income … As we have mentioned before, there may fundamentally be four kinds of contributions that can be made during the production of goods and services (a) contribution made by human labour, remuneration for which is called wage (b) contribution made by capital, remuneration for which is called interest (c) contribution made by entrepreneurship, remuneration of which is profit (d) contribution made by fixed natural resources (called ‘land’), remuneration for which is called rent. …” |