Which term refers to individuals who start and run a business and take risks?

• A. Managers
• B. Entrepreneurs
• C. Employees
• D. Investors

Answer: (B)

Entrepreneurs are individuals who start and run a business and take risks. They spot opportunities, bring together the resources needed (like money, people, and ideas), and organise them to create something of value. Because they’re putting their own money and effort on the line, they bear the financial risk if the venture doesn’t succeed, and they share in the profits if it does.

This distinguishes them from managers, who mainly run operations within an existing business; employees, who work for wages within a business; and investors, who provide capital but don’t necessarily decide how the business is run day-to-day.