INTRODUCTION TO ENTREPRENEURSHIP
CHARACTERISTICS OF AN ENTREPRENEUR
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is constant, like a paycheck for any other employee
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is typically less than for an employee
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is typically more than for an employee
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may go up or down, depending on the business
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Detailed explanation-1: -Startup capital is the money they use for funding their operations. This capital may come from the business owner’s own funds or another source.
Detailed explanation-2: -Entrepreneurs introduce new products or services that may result in significant improvements in productivity, reduction in costs, and improvement in the quality of life. Knowing their offerings much better than anyone else and being aware of customer needs, the entrepreneur can charge a premium for their innovations.
Detailed explanation-3: -Smart entrepreneurs use the money to produce quality goods or services. They reinvest their profits to upgrade the business. They hire more employees to boost the production, develop the infrastructure and expand the business to grow the revenue.
Detailed explanation-4: -The income of an entrepreneur is residual in nature as entrepreneur bear risk and the reward of risk is profit. Profit is the income remaining after deducting all the direct and indirect expenses.