GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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provide jobs
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produce goods and services
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improve their products
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earn a profit
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Detailed explanation-1: -What’s risk and how is it related to profit? Risk: the chance an entrepreneur takes in losing time and money on a business that may not prove profitable. It relates to profit because entrepreneurs willing to take the most risk make the highest profit.
Detailed explanation-2: -Entrepreneurs take risks because they are trying to make a profit on their unique good/service. They also take this risk to start their businesses because they see a need for a business and they decide to act on it based on their available resources. What are the factors of production?
Detailed explanation-3: -Some of the most important aspects of a capitalist system are private property, private control of the factors of production, accumulation of capital, and competition.